SEGRO and Pure Data Centres Group (Pure DC) have formed a joint venture to develop a circa £1bn fully fitted data centre in Park Royal, West London.
The circa 30,000 sq m, three-storey data centre will be built on a 10-acre plot on the edge of SEGRO Park Premier Road where an older warehouse, recently vacated by Matchesfashion, is currently located.
SEGRO will contribute the land to the joint venture and will carry out the site clearance and remedial works, and Pure DC will contribute 70MVA of secured power to enable the delivery of a 56MW IT load data centre.
The joint venture expects to sign a long-term pre-let with a global hyperscaler and construction will only start once planning has been obtained, lease commitments have been secured and financing has been arranged. This will be SEGRO’s first fully fitted data centre project.
David Sleath, CEO of SEGRO, 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.
“We expect this project to deliver an attractive risk-adjusted return and it will also help further strengthen SEGRO’s expertise in this area, enabling us to optimise and accelerate the significant value creation opportunity within our portfolio.”
Dame Dawn Childs, CEO of Pure DC, which is owned by Oaktree, 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.
“This joint venture demonstrates Pure DC’s ability to scale in a rapidly expanding market, creating fresh opportunities for growth and investment. With over 500MW of data capacity in development or operation, Pure DC brings deep expertise building data centres and working alongside hyperscalers. 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.”
Peter Kyle, secretary of state for the Department of Science, Innovation & Technology, said: “This announcement is another powerful endorsement of Britain as a home for tech investment, which will not only bolster the local economy and create job opportunities but also pave the way for a digital and AI-powered future.
“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.”
