Pramerica Eyes Expanding Data Center Markets in Europe
Portfolio | Dec 02, 2024 | Pramerica Real Estate Investor
Pramerica Real Estate Investors is poised to capitalize on the burgeoning demand for data centers in Europe, driven by increasing data usage, particularly from AI technologies. A significant shortfall in data center supply is anticipated, setting the stage for favorable rental growth across key European hubs such as Frankfurt, London, Paris, Amsterdam, and Dublin. The expected returns on data centers are forecasted to rise to 10-15% per annum, fueled by rental price competition as companies vie for limited space. As AI data demands surge, new markets with low power costs and readily available renewable energy sources are becoming attractive alternatives for data center expansion.
Sectors
- Real Estate Investment
- Data Centers
- Artificial Intelligence
Geography
- Europe – The primary geography discussed, with specific emphasis on key data center markets including Frankfurt, London, Paris, Amsterdam, and Dublin.
Industry
- Real Estate Investment – The article discusses investments in data center real estate, highlighting growth opportunities and potential returns in Europe.
- Data Centers – The core focus of the article is on the demand and supply dynamics of data centers influenced by AI, positioning them as a crucial industry segment.
- Artificial Intelligence – AI is a driving factor in increasing data usage and demand for data centers, pivotal to the investment strategy discussed.
Financials
- 10-15% per annum – The forecasted return on investment for data centers, driven by rental growth in major European markets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Pramerica Real Estate Investors | Investor | Company | A private equity firm focused on real estate investments, exploring opportunities in the data center market across Europe. |