Canada Pension Plan Investment Board (CPP) and Australian real estate giant Goodman Group are joining forces to develop data centers across Europe. The two companies will invest A$3.9 billion ($2.6 billion USD) in the partnership.
The joint venture will develop data center projects in Frankfurt, Amsterdam, and Paris. Both companies announced the investment details in a statement Tuesday.
AI Demand Drives Investment Surge
The data center sector is booming. Rising cloud computing adoption and expanding artificial intelligence applications have multiplied demand. Low-latency, cloud-oriented facilities attract particular interest.
Goodman Group CEO Greg Goodman summarized the situation: “There’s significant data center demand in the markets where we operate. Supply is quite limited.”
The company targets 0.5 GW of data center development underway globally by June 2026.
Goodman’s Global Expansion
Goodman Group traditionally operates in logistics and industrial real estate. However, recent years saw a shift toward digital infrastructure. The company’s global portfolio exceeds $50 billion in value.
Work continues beyond Europe. Infrastructure development started for a 1,000 MW data center campus in Japan. A 50 MW facility in Hong Kong will complete in 2026.
The company also entered the Silicon Valley market. It acquired a 45.8-acre site in San Jose for $200 million.
Why CPP Is Making This Move
CPP Investments manages over $575 billion in assets, making it one of the world’s largest pension funds. The fund focuses on infrastructure investments that deliver long-term stable returns.
Data centers fit this profile perfectly. Long-term lease agreements and steady demand from major tech companies provide reliable income streams.
Under the partnership, CPP will acquire half of Goodman’s European data center fund.
Why Europe Attracts Investment
The European data center market is growing rapidly. Frankfurt serves as the continent’s largest internet hub. It handles data transfer speeds exceeding 18 terabits per second.
Amsterdam and Paris also rank among key digital centers. Land and power procurement grows increasingly difficult in these cities. Early movers gain significant advantages.
Goodman already owns sites in these cities. The partnership aims to leverage these assets for rapid growth.
Intense Competition in the Sector
Data center investments are surging globally. Brookfield Asset Management announced plans to invest €20 billion in France over the next five years.
In the UK, the £4 billion DC01UK project received approval. It will become one of Europe’s largest AI and cloud hubs.
The CPP-Goodman partnership represents a major move in this competitive landscape.
