Goodman Group strikes $9.3 billion deal with Canada's CPPIB to build data centres in Europe
Dec 23 : Australia's Goodman Group has struck a A$14 billion ($9.32 billion) partnership with Canada Pension Plan Investment Board (CPPIB) to build data centres across Europe, deepening its foothold in the region's fast-growing AI infrastructure market.
Interest in data centres has swelled this year as tech giants and artificial intelligence hyperscalers have planned billions of dollars in spending to scale up infrastructure.
The partnership with the Canadian pension fund aligns with the AI ambitions of Australia's biggest property developer, which said earlier this year that it would expand its data centre business.
"This agreement is the clearest expression yet of how Goodman is evolving from a logistics specialist into an AI infrastructure provider," said David Tuckwell, chief investment officer at ETF Shares.
"Goodman is not just a landlord but simultaneously the developer, operator and equity partner. That allows it to pursue very large, complex projects in tier-one global cities without overburdening its balance sheet."
The Sydney-headquartered firm currently has 5 gigawatts of data centres in 13 cities, according to its website. Data centres under construction made up 68 per cent of the group's A$12.4 billion portfolio of projects under development, as of September.
Earlier this year, Goodman raised around A$4 billion, the largest capital raising in Australia at that time, to fund its data centre business growth plans.
FOUR PROJECTS IN THREE EUROPEAN COUNTRIES
The 50-50 venture, CPPIB's first data centre tie-up in Europe, involves an initial A$3.9 billion funding commitment to develop a portfolio of projects in Frankfurt, Amsterdam and Paris.
The partnership's portfolio comprises four projects, spanning across three different countries totalling 435 megawatts of primary power and 282 MW of IT load - power delivered to the servers and other computing equipment.
All projects are designed for speed to market, with secured power connections, planning permits and advanced site infrastructure, enabling construction to start by June 30, 2026, Goodman said.
Shares of Goodman rose as much as 9.2 per cent on Tuesday to A$31.920, their highest level since November 5, before closing 8.3 per cent higher.
($1 = 1.5022 Australian dollars)
