Here’s the translation into American English:
Castleforge, a prominent real estate investor, and Galaxy Data Centers, a comprehensive operator and advisor for data centers, have announced the joint acquisition of the Redhill Data Centre, located in Foxboro Business Park, near London. The transaction, valued at over £100 million, marks Castleforge’s entry into the data center sector and highlights the growing interest in digital infrastructure in the region.
A Strategic Center with Expansion Potential
The Redhill campus encompasses 11,800 square meters across three buildings and has an electrical capacity of 26 MVA. It currently hosts 26 tenants, including Fortune 500 companies and organizations from sectors such as financial services and artificial intelligence. This center is highly attractive due to its low-latency connection to major data centers in Slough and Docklands, as well as its commitment to green energy.
The acquisition underscores Castleforge’s strategic vision, which in its January 2024 report highlighted the increasing demand for data amid energy supply constraints and challenges in building new data centers in metropolitan areas.
Adam MacLeod, partner at Castleforge, commented:
“With advancements in artificial intelligence and cloud computing, the demand for data centers is growing exponentially. This investment not only aligns perfectly with our expertise in operational real estate but also represents a unique opportunity in a key market like London.”
Future Plans
Galaxy Data Centers, with extensive experience in North America and a growing presence in Europe and Asia-Pacific, plans to significantly expand the capacity of the data centerA data center or data processing center … Redhill. According to Dave Misra, managing partner at Galaxy, the existing infrastructure can already meet the immediate needs of customers, but they are exploring a tailored expansion of 10-15 MW to meet the growing demand for cloud services, edge computing, and hyperscale.
Paul Leong, CFO of Galaxy, emphasized:
“Redhill not only offers exceptional performance but has great potential for capacity expansion and strengthening customer relationships. We are committed to enhancing the tenant experience during this transition and beyond.”
Data Center Market Context in London
London is currently the largest data center market in Europe and the second largest globally, surpassed only by Northern Virginia. According to CBRE, the European data center market grew by nearly 20% year-over-year in the first quarter of 2024, with cities like London, Frankfurt, Amsterdam, and Paris standing out.
The location of Redhill, near the British capital, offers strategic advantages for digital services that require fast connections. As MacLeod stated:
“With digital innovation advancing relentlessly, we believe this is the ideal time to commit to this market. Redhill represents a significant opportunity to position ourselves in this expanding sector.”
Financing and Impact
The financing for the acquisition was provided by ICG Real Estate, while CBRE acted as intermediary. Castleforge, which has invested approximately £1 billion in real estate assets in the UK and Europe since 2010, anticipates a significant return on investment due to growth opportunities at Redhill.
Galaxy Data Centers, for its part, seeks to integrate modern and sustainable practices in the center, optimizing energy infrastructure and connectivity to meet the demands of the rapidly evolving digital environment.
The acquisition of the Redhill Data Centre not only reinforces Castleforge and Galaxy Data Centers’ commitment to digital infrastructure but also underscores the strategic importance of London in the global data center market. With ambitious expansion plans and a focus on sustainability, this project promises to be a key pillar in the digital ecosystem of the future.