Key Takeaways
- • PGIM Real Estate has acquired a 20.7ha site in western Melbourne for a planned hyperscale data centre campus, according to the company's statement.
- • The acquisition was made on behalf of its Global Data Centre Fund (GDCF), which will develop the site as part of its core strategy.
- • PGIM plans to invest a further A$1.2bn (approximately €300m) to develop the first of three phases of the campus.
- • The GDCF follows an "operator-independent" approach and a "build-fill-sell" strategy targeting opportunistic returns in the low-latency hyperscale segment.
- • Morgan Laughlin, global head of data centre investments at PGIM's real estate business, cited Melbourne's supply constraints and strong hyperscaler demand for cloud and AI inference workloads.
Summary
PGIM Real Estate, the property arm of PGIM, one of the world's largest investment firms, has purchased a 20.7-hectare site in western Melbourne as the first step in a planned hyperscale data centre campus, according to a company statement reported by IPE Real Assets. The land was acquired on behalf of its Global Data Centre Fund (GDCF), which will develop the site as part of its core investment strategy.
PGIM plans to invest a further A$1.2bn (approximately \u20ac300m) to develop the first of three phases of the campus. The filing describes the project as a hyperscale facility, though the statement did not specify the timeline for construction or the capacity of the planned facility.
The GDCF operates on an "operator-independent" model, partnering with leading regional and global data centre operators to access investment opportunities in supply-constrained markets. Its "build-fill-sell" strategy focuses on the low-latency hyperscale segment of the global data centre sector and targets opportunistic investment returns, the company said.
Morgan Laughlin, global head of data centre investments for PGIM's real estate business, said Australia, and Melbourne in particular, is an attractive location for development given limited supply of centrally located, low-latency powered sites suitable for cloud and AI inference workloads. He added that many leading hyperscalers have announced plans to develop or take up significant capacity in and around Melbourne.
PGIM plans to invest a further A$1.2bn (approximately \u20ac300m) to develop the first of three phases of the campus. The filing describes the project as a hyperscale facility, though the statement did not specify the timeline for construction or the capacity of the planned facility.
The GDCF operates on an "operator-independent" model, partnering with leading regional and global data centre operators to access investment opportunities in supply-constrained markets. Its "build-fill-sell" strategy focuses on the low-latency hyperscale segment of the global data centre sector and targets opportunistic investment returns, the company said.
Morgan Laughlin, global head of data centre investments for PGIM's real estate business, said Australia, and Melbourne in particular, is an attractive location for development given limited supply of centrally located, low-latency powered sites suitable for cloud and AI inference workloads. He added that many leading hyperscalers have announced plans to develop or take up significant capacity in and around Melbourne.
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