- Investment firm Arjun Infrastructure Partners has taken a 30% stake in StableCo, Data4’s €3.7 billion stabilised data-centre portfolio including Paris, Milan and Madrid.
- The deal marks Arjun’s debut in the data-centre sector and broadens Data4’s capital base alongside parent company Brookfield.
What happened: Arjun Infrastructure makes first move into data centres
Arjun Infrastructure Partners, through its latest fund and co-investors, has acquired a 30% stake in Data4’s “StableCo” portfolio. This is a dedicated set of fully operational hyperscale data centres located in Paris, Milan and Madrid, with a combined capacity of 244MW. The assets are revenue-generating and considered de-risked for long-term infrastructure investors.
Under the agreement, Data4 — which was acquired by Brookfield in April 2023 — will continue to manage the sites to ensure seamless operation. This marks Arjun’s first direct investment in the data-centre space, joining Brookfield and other institutional backers in StableCo. The portfolio is valued at around €3.7 billion and is expected to play a significant role in supporting the growth of AI and cloud demand in Europe.
Also read: Colt concludes quantum encryption trial
Also read: AtlasEdge and Colt unite to enhance connectivity in Portugal
Why it’s important
This transaction signals rising institutional interest in data centres as a stable infrastructure asset. By entering into StableCo, Arjun joins a growing list of investors viewing European data centres as essential utilities supporting digital economies. The StableCo model enables asset recycling, giving operators like Data4 a way to unlock capital from mature assets while maintaining operational control.
The deal also highlights a shift in capital flows to second-tier cities. Markets like Milan and Madrid are becoming attractive due to available power, land, and proximity to key fibre routes. CBRE forecasts that secondary European markets will each surpass 100MW capacity by end-2025, indicating future demand will not be limited to traditional hubs like Frankfurt or Amsterdam.
However, questions remain around the long-term viability of stabilised assets. Energy costs in Europe remain volatile, and regulations around water usage, carbon emissions, and public resistance to new builds continue to mount. As AI and cloud workloads surge, operators may struggle to maintain sustainability goals while meeting hyperscale performance targets. Investors like Arjun must now navigate a landscape where political, environmental and social scrutiny is growing alongside digital demand.
