ActivumSG, on behalf of ActivumSG Fund VII, has announced the sale of a prime powered land site in Madrid, Spain, to EDGNEX, the data centre arm of DAMAC Group. DAMAC Group's total investment in delivering a data centre on the site will exceed €400m.
Located 15km from Madrid's city centre, the asset is in the fastest-growing data centre market outside the ‘FLAPD’ (Frankfurt, London, Amsterdam, Paris and Dublin) Western European data centre investment hotspots. The site occupies one of the few remaining plots of land in Madrid that can be connected to a power source of the level required to fuel sizeable data centre operations feasibly.
After securing the c. 22,297m2 site in 2022, ActivumSG leveraged its in-country expertise to confirm power rights for 40MW ahead of the acquisition. Highly favourable terms were negotiated with the supplier that guarantee 10MW immediately, with an additional 30MW by Q1 2026, while incorporating significant power infrastructure.
Brian Betel, Head of Direct Transactions, ActivumSG, said: “Our powered land strategy provides our investors with a de-risked entry point into the megatrend of digitalisation, which is reshaping demand for real estate globally while helping facilitate major investment needed to deliver the infrastructure required to fuel the AI revolution. The 40MW power agreement secured for this site by our in-country team combined with excellent redundancy served to further differentiate this asset in what is already a severely supply-constrained local market.”
Hussain Sajwani, Founder of DAMAC, said: “The acquisition of this asset – our first planned data centre site in Europe – will help to plug the data centre supply-demand mismatch in Madrid and support the development of groundbreaking technologies. Our continued significant investment in digital infrastructure and AI reflects our deep conviction in the opportunity offered by technological innovation. This is an increasingly important part of our diversified investment portfolio and our future ambitions as a Group level.”
Saul Goldstein, CEO and Founder of ActivumSG, said: "We pride ourselves on a flexible investment mandate and opportunity-led strategy. This sale is a testament to ActivumSG’s ability to leverage its deep local relationships, agility, and execution prowess. While powered land investments can be technically complex, our talented team in Spain has now completed two of these transactions with outstanding results."
ActivumSG sees further opportunities to acquire strategically located sites across Europe where value can be enhanced by preparing them for data centre development and operations.
Image source - Pexels.
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