ActivumSG has, on behalf of ActivumSG Fund VI, sold a c. 17,652m2 plot of land in Meco, Madrid to Pure DC.
The site sits within the Madrid-to-Barcelona transport corridor, one of Spain and Europe’s most economically significant regions. It will be home to Pure DC’s first data centre in Spain.
ActivumSG acquired the site in July 2021 from two local manufacturing companies. The acquisition followed an extensive analysis of the Madrid Municipality Electricity Grid to identify areas that would be most suited to data centre development.
ActivumSG secured the signing of a 25MW power agreement in 2022 to allow the connection of power cables from a nearby electric substation and was granted the dual feed in 2023. Tech-Stone was involved throughout the process and will continue to manage the delivery of the scheme for Pure DC.
Brian Betel, Head of Direct Asset Transactions, ActivumSG, said: “There is a huge opportunity in powered land plays as they help solve a pressing issue: a growing requirement for sites suitable for data centre development, which are needed to support the significant expected investment into emerging technologies such as AI. However, while not taking on development risk or the operational complexity of running a data centre, for a successful powered land play, you still need hands-on local expertise and relationships. ActivumSG has an extensive network of in-country teams across Europe to support sourcing and delivery of similar projects.”
Saul Goldstein, CEO, ActivumSG said: “This deal is a perfect demonstration of our Spanish teams’ creativity. We have capitalized on the growing interest of global data centre operators in Madrid by bringing power to land situated in a highly advantageous location for data centre development, allowing us to achieve a high exit multiple and deliver strong returns for our investors in an otherwise subdued transactional environment. However, we are not solely focused on disposals, and remain active on the acquisition side, with a significant dry powder to deploy in Fund VII and an opportunistic mandate to take advantage of current market dislocation.”
Dawn Childs, CEO, Pure DC, said: “Our expansion into Madrid allows us to serve a growing European market and to further extend our global portfolio of data centres. We are excited about working with partners in Spain to deliver another next-generation data centre campus which can help to satisfy the increasing need for data storage and processing power."
Image source - Pexels.
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