SEGRO plc (British property investment and development company) and Pure Data Centers Group Limited have announced the formation of a second joint venture aimed at developing a fully fitted 48-megawatt data center in Paris, with the partnership targeting a pre-let agreement with a global hyperscaler.

The deal marks SEGRO's first data center development on the European continent and extends a growing relationship between the two companies that began with their first joint project at Premier Park in the United Kingdom.

Structure of the Deal

The new entity will be structured as a 50:50 joint venture, with both SEGRO and Pure DC expected to retain equal shares through to the completion of the project. SEGRO's primary contribution to the partnership will be a prime site located within a key Paris Availability Zone, drawn from its existing land bank, along with pre-secured power sourced from its 3.0 gigavolt-ampere European power bank.

The financial commitment expected from SEGRO is described as capital efficient. The company's estimated cash equity contribution is anticipated to be approximately USD 80 million over the total construction period, with Pure DC contributing the remaining equity.

The project is anticipated to deliver an attractive yield on cost, creating what the partners describe as significant income and value prospects for the joint venture.

SEGRO's Continental European Debut

For SEGRO, the announcement represents a significant strategic milestone. The company has described the Paris project as its first data center development in Continental Europe, building on a broader platform that the company has been assembling across major European metropolitan markets.

SEGRO Chief Executive David Sleath characterised the venture as a demonstration of how the company can extract value from its assembled power bank through a model that is both repeatable and capital efficient.

Sleath noted that the first joint venture with Pure DC, located at Premier Park, is progressing well, with planning approval secured ahead of schedule and active discussions underway with two global hyperscalers.

He described the combination of SEGRO's power-secured sites and Pure DC's technical expertise as a formula capable of accelerating the delivery of what he called highly profitable, fully fitted facilities.

The Case for Paris and European Demand

Gary Wojtaszek, Executive Chairman and Interim Chief Executive of Pure DC, pointed to the structural scarcity of large-scale powered sites in Europe's leading metropolitan markets as the defining context for the transaction.

He described such sites as among the most strategically valuable resources in digital infrastructure, with demand for digital infrastructure across Europe accelerating while access to suitable sites with secured power and favourable planning positions in what the industry refers to as FLAP-D markets remains the defining constraint.

The FLAP-D designation refers to Frankfurt, London, Amsterdam, Paris, and Dublin, the five cities widely regarded as the primary hubs of European data center activity. Wojtaszek said the portfolio SEGRO has assembled across Europe's major metropolitan markets represents an exceptionally rare asset given those supply constraints.

Pure DC's Backing and Expertise

Pure DC is described as a premier European and Middle East data center developer and operator with over a decade of experience delivering digital infrastructure for hyperscale users.

The company's financial backers include Oaktree and Brookfield, two major institutional investors. Wojtaszek said that by combining SEGRO's pipeline with Pure DC's hyperscale design, delivery, and operational expertise, the joint venture can materially accelerate the delivery of mission-critical digital infrastructure while unlocking substantial value from some of Europe's most strategically important powered assets.

SEGRO's Broader Data Center Strategy

The announcement reflects SEGRO's stated strategy of creating value upside and recurring income from its pipeline of data center opportunities across well-located European sites.

The company has described the joint venture model with Pure DC as one that allows it to leverage its assembled land and power assets without deploying disproportionate capital, relying instead on its partner's specialist development and operational capabilities to bring projects to completion.

The Paris announcement comes as the second transaction in what SEGRO characterises as an evolving platform. The company's 3.0 gigavolt-ampere European power bank serves as a core component of the strategy, with SEGRO positioning its ability to contribute pre-secured power as a key differentiator in a market where power availability has become a primary bottleneck for data center development across Europe.

The joint venture has been announced with a focus on securing a pre-let with a global hyperscaler prior to or during the construction phase, consistent with the approach being pursued at the first Premier Park project, where discussions with two hyperscalers are described as active.

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