Data4, a company backed by Brookfield, is set to invest approximately €300 million ($331 million) to establish a cutting-edge data center hub in Greece, as demand for artificial intelligence (AI) services continues to surge. The Paris-based firm is currently in talks with existing lenders and Greek banks to finance the majority of the project through new debt, according to CEO Olivier Micheli in a recent interview with Bloomberg.
The new campus, to be located in Paiania, near Athens, leverages Greece’s strategic positioning as a digital bridge between Europe, the Middle East, and Africa. As a landing site for several major submarine cables, the location offers a critical infrastructure boost for the region. “This investment is a significant contribution to the local economy and digital ecosystem,” Micheli added.
Data4 specializes in the design, construction, and management of data centers across Europe, and the Greece project is part of a broader €7 billion investment strategy that extends through 2030. Operating in six countries, including France and Italy, Data4 is also exploring one or two new European markets for potential expansion.
Brookfield Infrastructure Partners, which acquired Data4 from Axa IM in 2023, is reportedly considering selling a minority stake in some of the company’s assets. Citigroup Inc. has been engaged to assist in raising funds for fully constructed data centers with stable tenant bases. Initial bids for these stabilized assets are expected later this month.
Data centers, along with mobile phone towers and fiber-optic networks, are increasingly attracting investment due to their steady returns and robust growth outlook. As the reliance on digital services and AI expands, infrastructure like data centers is becoming even more essential. In a similar move, Blackstone Inc. recently acquired Australian data center operator AirTrunk for A$24 billion ($16.1 billion), reflecting the sector’s rising value.
Data4’s Greece campus is designed for further scalability, with the potential for an additional €200 million investment. Talks are underway with local authorities to support this expansion. The company is also evaluating various funding options to fuel its growth ambitions.
Earlier this year, Data4 launched a second campus in Milan and secured a €2.2 billion loan to partially fund the expansion. Micheli revealed that the company has since activated an option for an additional tranche of up to €1 billion to support further growth initiatives.
Analysis: A Strategic Opportunity in a Growing Market
Data4’s investment in Greece comes at a pivotal moment in the data center industry, driven by the rise of AI and digital transformation across industries. Greece’s geographic location enhances its appeal, serving as a vital hub for data transmission across continents. For investors, the stability and high demand for data infrastructure make this a compelling opportunity.
In terms of profitability, data centers offer long-term stable returns, especially as digital dependence grows globally. Investors in Data4’s latest project could benefit from solid returns as the reliance on AI, cloud computing, and digital communication increases. Additionally, Brookfield’s potential stake sale offers a chance for new investors to tap into the high-growth sector.
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