SEGRO and Oaktree-owned Pure Data Centres Group have teamed up to develop a £1bn, 56MW fully fitted data centre.
The joint venture project at Royal Park in West London, SEGRO’s first such development, is expected to be prelet to a hyperscaler.
The 323,000 sq ft, three-storey data centre will be built on a 10-actre plot on the edge of the SEGRO Park Premier Road industrial site, with 70MVA of power secured by Pure DC.
SEGRO anticipates a 9-10% net yield on cost and will contribute £150m of cash equity to a total gross capital investment of £1bn.
SEGRO chief executive David Sleath said: “Building on our 20 years of experience in the powered shell data centre market, we have been exploring how best to utilise our skills and 2.3GW land-enabled power bank to maximise the opportunity in this fast-growing sector.
“This innovative joint venture with Pure DC allows us to develop our first fully fitted data centre, alongside a highly experienced partner with an excellent track record of delivering world-class facilities to global hyperscalers.”
Dawn Childs, chief executive of Pure DC, added: “SEGRO choosing to enter into a joint venture with Pure DC for its first fully fitted data centre development demonstrates our capability to create world-class digital infrastructure. Together we will develop a 56MW data centre in central London capable of handling next-generation cloud and AI workloads.
Secretary of state for the Department of Science, Innovation & Technology Peter Kyle said: “Private investment like this innovative partnership between SEGRO and Pure DC will help us ensure the UK has the digital infrastructure it needs to thrive.”
Construction will start in 2026 once planning has been obtained, lease commitments secured and financing arranged.
Send feedback to Tim Burke
