Principal Asset Management, a prominent player in the real estate industry, has recently made a significant move by acquiring a logistics facility in the Netherlands. This strategic acquisition signals their intention to repurpose the facility into a state-of-the-art data center, catering to the growing demand for digital infrastructure. The facility, located in the Schiphol area of Amsterdam, covers an impressive 24,755 square meters (or approximately 266,460 square feet).
Switch Datacenters: The Powerhouse Behind the Conversion
To execute this ambitious project, Principal Asset Management is partnering with Switch Datacenters, a well-established Dutch colocation provider based in Amsterdam. Switch Datacenters has demonstrated an exceptional track record in the Amsterdam market, making them an ideal collaborator for this venture. The partnership aims to lease and transform the acquired facility into a cutting-edge data center capable of handling up to 42MW of data capacity.
Sustainable features are set to revolutionize the industry
This future data center promises to be more than just a technologically advanced facility. In line with the growing focus on sustainability, Principal Asset Management has incorporated several key features to reduce its environmental impact. The data center will boast over 1MW of on-site solar generation capacity, providing a renewable energy source and minimizing its carbon footprint.
Furthermore, the facility will implement a waste heat recovery scheme, effectively channeling excess heat to benefit the local community. By repurposing waste heat to warm nearby buildings, this innovative solution represents a commitment to community engagement and energy efficiency.
Principal Asset Management’s vision for a pan-European portfolio
With this investment in Amsterdam, Principal Asset Management takes a significant stride towards realizing its vision of establishing a high-quality, pan-European portfolio of leased data center assets. By repurposing the logistics facility, the company demonstrates its commitment to staying competitive in the digital infrastructure sector.
CBRE facilitated the transaction
Principal Asset Management engaged the services of CBRE, a renowned commercial real estate services firm, to represent them during the transaction. The expertise and market knowledge brought by CBRE played a critical role in ensuring a smooth and successful acquisition process.
Switch Datacenters: Pioneering Data Center Solutions
Switch Datacenters, the Dutch colocation provider selected as Principal Asset Management’s partner, brings a wealth of experience and expertise to the table. With two operational data centers already in Amsterdam, Switch Datacenters has solidified its reputation as a leading player in the local market. This partnership further strengthens their foothold and positions them for continued growth and expansion.
Principal’s deep-rooted presence in the data center industry
Principal Asset Management, together with their affiliate, Principal Real Estate, has been actively investing in the data center industry for a considerable period of time. Their extensive experience and presence within the sector has allowed them to identify opportunities for growth and development. This acquisition in the Netherlands perfectly aligns with their continued commitment to expanding their portfolio.
A Glimpse into the Future: Principal’s European Data Center Fund
Principal Asset Management has big plans for its European data center fund. Moving forward, they intend to allocate up to 40% of the fund’s assets to other European markets, including countries such as Spain, Italy, and Switzerland. This strategic approach reflects their confidence in the growing demand for data centers and their determination to remain at the forefront of the industry’s expansion.
In conclusion, Principal Asset Management’s recent acquisition of a logistics facility in the Netherlands for conversion into a data center marks an important milestone in their pursuit of a pan-European data center portfolio. With the support of renowned partners, such as Switch Datacenters, and a focus on sustainable solutions, Principal Asset Management is poised to make a significant impact in the digital infrastructure sector. As they continue to leverage their expertise and explore future opportunities, Principal Asset Management remains well-positioned to shape the future of the data center industry across Europe and beyond.