D A T A C E N T R E P R E D I C T I O N S
The development of this project is expected to generate hundreds of jobs during its multi-year construction phase, which will be complemented by a comprehensive package of support designed to upskill the local community, with an emphasis on fostering a diverse and inclusive future workforce for the technology sector.
Data centres are critical to the digital economy, creating highly skilled job opportunities in London and across the UK, providing the essential infrastructure that drives technological innovation, growth and contributes to building a more inclusive digital society.
In line with SEGRO’ s Responsible SEGRO framework, which prioritises investment in local communities, the joint venture aims to establish a range of projects that will bring employment, educational and environmental benefits to the surrounding area.
SEGRO and Pure DC are expected to each retain a 50 % share in the project through to completion. No management or incentive fees are payable to either party.
The gross capital investment is anticipated to be approximately £ 1 billion and is projected to deliver an unlevered net yield on cost( based on future rents and costs, excluding finance cost as per the data centre market convention) of 9 % to 10 %.
SEGRO Park Premier Road is a superprime West London industrial estate which was acquired by SEGRO in 2009.
The 10-acre plot that has been identified for the development is on the edge of the estate where an older warehouse is currently located. SEGRO will contribute the land to the joint venture and will carry out the site clearance and remedial works.
Pure DC will be contributing 70MVA of secured power to enable delivery of a 56MW IT load data centre. Park Royal sits within a key London Availability Zone where there is little competing land supply and limited power capacity, so is expected to present an attractive proposition for global hyperscalers looking to grow their capacity in one of Europe’ s largest data centre markets.
The joint venture will develop the data centre, combining SEGRO’ s expertise in planning and development and Pure DC’ s experience of delivering operational data centres. 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( racking, servers etc) which will be provided by the customer in line with normal market practice.
The joint venture expects to sign a longterm( 15 years or more) net lease with a global hyperscaler. Construction will start once planning has been obtained, lease commitments have been secured and financing has been arranged.
In addition to contributing land, SEGRO’ s estimated cash equity contribution to the joint venture is expected to be around £ 150 million over the total construction period. The remaining construction costs will be financed by non-recourse bank financing, prior to the commencement of the construction.
Timeline
The clearance of the site will begin, planning will be submitted and marketing of the data centre capacity will commence now that the joint venture has been agreed.
It is anticipated that the construction of the shell will commence in 2026 with the fully fitted space available for customer use from 2029. �
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