SEGRO, the UK investment trust, has announced a joint venture with Pure Data Centres Group backed by Oaktree, to develop a fully fitted data centre in London.
The estimated gross capital investment is approximately £1 billion.
SEGRO’s cash equity contribution to the project will be around £150 million, with the development projected to yield a net return of 9 to 10 per cent.
David Sleath, CEO of SEGRO, commented, “This innovative joint venture with Pure DC allows us to develop our first fully fitted data centre, alongside a highly experienced partner with a proven track record of delivering world-class facilities to global hyperscalers.
“This project strengthens our expertise and accelerates our value creation opportunities within the growing data centre sector.”
Dame Dawn Childs, CEO of Pure DC, echoed his comment, “Our collaboration with SEGRO at Park Royal will deliver a next-generation data centre capable of supporting cloud and AI workloads.
Pure DC’s extensive experience in developing over 500MW of data capacity ensures this project will meet the evolving needs of the world’s leading technology companies.”
The Secretary of State for the Department of Science, Innovation & Technology, Rt. Hon. Peter Kyle MP, backed the initiative:
“Private investment like this partnership between SEGRO and Pure DC will ensure the UK has the digital infrastructure necessary to support our AI-powered future. This investment will bolster the local economy, create job opportunities, and help position the UK as a global leader in digital innovation.”
The joint venture anticipates signing a long-term lease with a global hyperscaler, launching next year and will complete in 2029.
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