Segro plans £1 billion data center amid growing AI demand
- Segro is investing £1 billion to construct a data center in Park Royal, London.
- This project will be developed in partnership with Pure Data Centres and Oaktree Capital Management.
- This venture responds to the increasing demand for computing power due to advancements in AI.
In the United Kingdom, leading property development firm Segro announced a significant investment in the burgeoning digital infrastructure sector by launching a £1 billion data center project. This ambitious project will be located west of London within Segro's industrial site in Park Royal. The decision to invest in these facilities stems from the escalating demand for computing power, particularly driven by advancements in artificial intelligence technology. The data center will span 30,000 square meters and will be structured as a three-story building, increasing the available data processing capabilities in the region. This initiative is notable as it marks the first collaboration under a newly-established 50-50 joint venture between Segro and Pure Data Centres, a partnership backed by Oaktree Capital Management. Plans are in place to attend to the necessary planning permissions as early as the second half of this year. Moreover, ground excavation is projected to commence next year, indicating a structured timeline for the development of the facility. The collaboration represents a wave of investments expected to cater to the rising needs of technological advancements and data management in the UK. Given the rapid evolution of sectors requiring massive data centers, this venture could potentially establish a stronger digital landscape in the region and capitalize on the increasing reliance on technologies such as AI. The data center will be fully fitted, a significant upgrade in the facilities offered by Segro. The secured grid connection for the site also underscores the feasibility and planning that has gone into ensuring the infrastructure is poised to support operations once established. Overall, the development speaks volumes about how the property sector is adapting to shifts in market demand concerning technology infrastructure. As the usage of artificial intelligence and data analysis grows, ventures such as Segro's contribute to bolstering domestic capabilities in managing the future of computing power. This strategic move demonstrates how traditional property development is evolving alongside advancements in technology, helping to meet a crucial need as the technology landscape continues to expand.