Goodman surges on back of new data centre partnership
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More news: Shares in Goodman Group have surged on Tuesday after the real estate and infrastructure group announced a $14 billion data centre partnership with Canada Pension Plan Investment Board.
The company's share price was up 6.3% at the open, with shares trading hands around $31. Goodman shares are still down 14% year to date after peaking at around $38 a share in January.
The $63 billion group has doubled down on data centres this year as it looks to meet soaring demand for cloud computing and AI.
Goodman signs $14b data centre deal for 'rare' European assets
The news: Goodman Group has signed an agreement with the Canada Pension Plan Investment Board to establish a $14 billion data centre partnership.
Taking 50/50 ownership, the portfolio includes four projects totalling 435 MW of primary power and 282 MW of IT load, including two sites in Paris, one in Frankfurt and one in Amsterdam.
Work will commence by 30 June with the sites having secured power connections, planning permits and substantial infrastructure works. The transaction will settle in phases and is expected to be completed by March 2026.
What they said: "A portfolio of this size and quality — located in Europe' FLAP markets — is rare. These powered locations are highly sought after to meet the rapidly growing requirement for cloud computing and AI adoption, particularly when they offer speed to market and delivery certainty," Goodman Group CEO Greg Goodman said.
"The quality and scale of this partnership makes it ideal for our long-term relationship with CPP Investments. We're pleased to be investing alongside them for their entry into the European data centre market."
CPP Investment senior managing director and global head of real assets Max Biagosch said the partnership would help it establish a strong European foothold in Tier 1 markets, extending its existing relationship with Goodman.
"By combining Goodman's extensive development capabilities and powered landbank with pur global expertise in digital infrastructure investments, this partnership allows us to capitalise on a compelling growth opportunity," Biagosch said.
The source: ASX
