- Currently, BentallGreenOak (BGO) is expanding its real estate investment strategy into data centres through cooperation with the Nordic data centre service provider Bulk Infrastructure.
- BGO, a real estate investor, has significantly increased its ownership interest in Bulk Infrastructure to support the expansion of the Norwegian company’s data centre operations powered by renewables.
- Increased demand for computing power for AI is fueling investments from major users such as Microsoft, Meta, and Amazon.
OUR TAKE
Bulk Infrastructure Indeed, increase opportunities for large capacity in its three existing data centers and in other Nordic destinations. Combined with the reliability of renewable energy, cold climate, stable business environment, and highly located fiber-optic networks, Northern Europe is attracting the attention of the fast-growing European and global data centers.
–Miurio Huang, BTW reporter
BentallGreenOak (BGO) is expanding its real estate investment strategy into data centres through cooperation with the Nordic data centre service provider Bulk Infrastructure.
The partnership between BGO and Bulk Infrastructure
BGO, a real estate investor, has significantly increased its ownership interest in Bulk Infrastructure to support the expansion of the Norwegian company’s data centre operations powered by renewables.
Executives from both BGO and Bulk Infrastructure revealed that BGO has more than doubled its equity stake, with an additional investment of 350 million euros.
According to BGO Co-Chief Executive John Carrafiell, this brings BGO’s total investment in Bulk Infrastructure to over 640 million euros(700 million dollars) since 2020.
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Demand for renewables-powered projects
Increased demand for computing power for AI is fueling investments from major users such as Microsoft, Meta, and Amazon.
The collaborative project in southern Norway, powered by wind, solar, and hydro sources, aims to become Europe’s largest 100% renewable energy-powered site. Initially targeting 400 megawatts by 2026, the project now aims for a 2 gigawatt goal.
“Given the tenants’ commitments to zero-carbon or even more stringent requirements, sustainable and renewable data centres are imperative as they account for a significant portion of their carbon footprint,” stated Carrafiell.
With European governments advocating for local data storage and operators prioritising carbon emission reduction, the Nordic region sees the data centre sector as a promising avenue for growth.
Challenges and significance
In Norway, a conflict arose when the partially government-owned munitions maker Nammo encountered limitations in expanding its factory due to the allocation of power to a TikTok data centre.
Carrafiell emphasised the strong demand, highlighting power availability as a critical factor for data centres. New buildings are being constructed from the ground up to facilitate the scalable operations of AI-driven businesses, such as through the implementation of liquid cooling for servers.
Situated adjacent to the largest renewable power sub-station in Europe, the data centre could potentially reduce energy loss by up to 15% during transmission through cables. Furthermore, the power-usage efficiency of the data centre is projected to be at least 10% more efficient. AI-driven data centres exhibit power densities up to 40 times higher than those of traditional centres, underscoring the importance of ample space for the expansion of technology clients.
Bulk Infra founder and Executive Chairman Peder Naerboe highlighted the significance of proximity to the initial facility for customers aiming to deploy 20 megawatts or more, emphasising the strategic advantage it provides.
