SEGRO, Pure form £1bn joint venture for London data centre

SEGRO has entered into a joint venture with Pure Data Centres Group to develop its first fully fitted data center in Park Royal, London, with an estimated gross capital investment of £1 billion. The 56MW facility, which spans approximately 30,000 square meters, is expected to be pre-leased to a hyperscaler and deliver a net yield of 9-10%. SEGRO's equity contribution to the project will be around £150 million, and construction is slated to begin in 2026, with completion anticipated by 2029. This venture marks a strategic move for SEGRO, which has over 20 years of experience in the powered shell data center market, as it aims to capitalize on the growing demand for digital infrastructure in a land-constrained area. The project will leverage SEGRO's 2.3GW land-enabled power bank and Pure DC's expertise in data center fit-out. The Secretary of State for the Department of Science, Innovation & Technology highlighted the importance of such private investments for enhancing the UK's digital infrastructure.