One of London’s biggest data centres is to be built at the Park Royal industrial estate near Acton, it was revealed today.
The £1 billion project will create a 56MW data centre “capable of handling next-generation cloud and AI workloads” and generate hundreds of local jobs.
The facility is being developed as a 50:50 joint venture between UK warehouse investor Segro, and Pure Data Centres Group (Pure DC), which is owned by Canadian backed asset manager Oaktree.
It is expected that the data centre will be pre-let to a hyperscaler on a long-term lease of at least 15 years before it is completed in 2029.
Segro is providing the land and carrying out the site clearance and remedial works while Pure DC have secured 70MVA of power to enable delivery of a 56MW IT load data centre. .
The partners are providing around £300 million in equity with the rest of the costs funded by bank financing. The net yield is expected to be around 9% to 10%.
The 30,000 sq m three storey centre is being built on the edge of Segro Park Premier Road, a site acquired by Segro in 2009.
The 10-acre plot identified for the development is on the edge of the estate where an older warehouse, recently vacated by the failed online retailer Matchesfashion, currently stands.
It will include a closed loop liquid cooling system to minimise the impact on the local water supply. It will be Segro’s first fully fitted data centre.
The fitout will include mechanical and electrical elements and long lead equipment such as power distribution, cabling and cooling systems. It will not include IT equipment such as servers which will be provided by the customer
Science, Innovation & Technology Secretary 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 helping us harness the power of technology to grow the economy and raise living standards, the central missions in our Plan for Change."
Segro’s CEO David Sleath said:"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.
Dame Dawn Childs, CEO of Pure DC, said: “Segro Park Premier Road, Park Royal is one of London's most sought-after data centre locations and will help support the UK's ambitions for digitalisation."
Construction will start once planning has been obtained, lease commitments have been secured and financing has been arranged.
