Canada Pension Plan Investment Board says it has signed a partnership agreement with Goodman Group to establish a portfolio of European data centres.
CPP Investments’ 50% share of the initial capital commitment comes in at about $1.8 billion.
The announcement marks CPP Investments’ first data centre partnership in Europe, where the entities will look to develop projects in Amsterdam, Paris and Frankfurt, Germany.
Max Biagosch, senior managing director and global head of real assets for CPP Investments, says the transaction could help the fund establish a strong European foothold in the data centre sector across key markets.
The transaction is subject to closing conditions and is expected to be completed by March next year.
The move comes after the pension fund announced in July it would provide $225 million in funding for an Ontario data centre through a 50% interest in a construction loan with Deutsche Bank Private Credit and Infrastructure.