(Bloomberg) -- Brookfield-backed Data4 will invest around €300 million ($331 million) to build and develop a new hub in Greece amid increasing demand for data centers driven by artificial intelligence services.
The Paris-based company is in talks with existing lenders and Greek banks to fund the majority of the project with new debt, Chief Executive Officer Olivier Micheli said in an interview with Bloomberg. The new campus will be in Paiania, near Athens.
Greece is a strategic link connecting Europe to the Middle East and Africa and is the landing point of several major submarine cables, Micheli said. The new site is a “significant contribution to the local economy and digital ecosystem.”
The company specializes in the design, construction and management of data centers in Europe and has a plan to expand with €7 billion of investments by 2030. Including Greece, it operates in six countries and is considering one or two additional markets across the continent, Micheli said.
Owner Brookfield Infrastructure Partners, which bought Data4 from Axa IM in 2023, is weighing a minority stake sale for some of the firm’s assets, Bloomberg previously reported. Citigroup Inc. is helping to tap investors for the so-called stabilized assets, fully-constructed data centers with high and stable tenancy rates. Initial bids are expected this month.
Data centers, mobile phone towers and fiber networks have become popular targets for investors, given their stable returns and strong growth prospects as reliance upon technology grows. Blackstone Inc. recently agreed to buy Australian data center operator AirTrunk in a deal valuing it at A$24 billion ($16.1 billion).
Data4 has the capacity to develop more centers in the Greek hub, which could include an additional investment of up to €200 million, which the firm is discussing with local authorities, the CEO said. The company is also looking at alternative ways to raise more funds for its growth plans.
Earlier in the year, the company created a second campus in Milan, and closed a €2.2 billion loan to partially fund the expansion. Since then, it has agreed to activate an option for a further tranche of up to €1 billion, Micheli said.
--With assistance from Abhinav Ramnarayan, Vinicy Chan and Pamela Barbaglia.
©2024 Bloomberg L.P.
