This week marked a substantial development in the data center arena as real estate firm Segro and Pure DC announced a new £1 billion joint venture. The project will develop a massive data center facility in Park Royal, West London. With a planned area of 30,000 sqm and a capacity of 56MW, this facility aspires to cater to hyperscalers, who will manage their server equipment on-site.
The partnership allocates equal ownership to both Segro and Pure DC. Segro, known for its industrial real estate expertise, will contribute by providing the site and its power infrastructure. Meanwhile, Pure DC will be responsible for equipping the facility with the necessary power and technology to support data center operations.
Notably, the venture aims to secure a long-term lease exceeding 15 years with a leading global hyperscaler. This strategic move into the digital infrastructure space marks Segro’s first venture into fully fitted data centers. David Sleath, Segro’s CEO, expressed enthusiasm: “This innovative joint venture with Pure DC allows us to develop our first fully fitted data center, alongside a highly experienced partner with an excellent track record of delivering world-class facilities to global hyperscalers.”
Dame Dawn Childs, CEO of Pure DC, added, “SEGRO choosing to enter into a joint venture with Pure DC for its first fully fitted data center development demonstrates our capability to create world-class digital infrastructure.”
The data center boom, fueled by a surge in AI investments, has created increased demand for cloud computing power. Challenges like site availability and sustainable energy consumption persist. Nonetheless, the potential for lucrative returns remains promising, as noted by Sleath.
Construction is set to begin next year with operational launches anticipated by 2029. The facility is projected to create significant local employment opportunities.
The UK government acknowledged this development as a testament to the nation’s attractiveness for tech investment. Peter Kyle, Secretary of State for the Department of Science, Innovation, and Technology, commented, “This announcement is another powerful endorsement of Britain as a home for tech investment, which will not only bolster the local economy and create job opportunities but also pave the way for a digital and AI-powered future.”