Azrieli Group Secures 1.4 Billion Euro Financing for European Data Centers
Translated & summarized from Ice by baba
The Azrieli Group, led by Dana Azrieli, has secured 1.4 billion euros in financing for its European data center expansion through its subsidiary Green Mountain. The funds will support an 80-megawatt data center campus, with a major tech company leasing the facility for 15 years. This move follows other recent financing deals and strategic agreements in Germany, England, and Norway. The group acquired Green Mountain in 2021, which specializes in green data centers leveraging Norway's low energy costs.
The story in 6 lines · by baba
- Azrieli Group secured 1.4 billion euros in financing for European data center expansion.
- The financing will support an 80-megawatt data center campus for a major tech client.
- Green Mountain, Azrieli's subsidiary, specializes in green data centers in Norway.
- The group acquired Green Mountain in 2021 for approximately 2.8 billion shekels.
- The new campus is expected to generate annual revenues of around 51 million euros.
- Azrieli also recently secured 592 million euros for a Frankfurt data center project.
The Azrieli Group, led by Chairwoman Dana Azrieli, has secured significant financing totaling approximately 1.4 billion euros to expand its data center operations in Europe. The funding will support the development of an advanced 80-megawatt data center campus. A primary credit facility of about 1 billion euros, with a seven-year term and interest rates between 2% and 3% above EURIBOR, forms the bulk of the financing. The remaining funds will cover operational expenses and VAT reimbursements from a major international technology company that has leased the facility for 15 years.
Despite a temporary delay of 16 weeks in the first phase and 12 weeks in the second due to client-requested specification changes, the project's economic potential remains strong. This development follows recent strategic agreements by Green Mountain, the Azrieli Group's Norwegian subsidiary specializing in green data centers, in Germany, England, and Norway. These facilities complement the group's successful 90-megawatt TikTok campus, which significantly boosted sector results.
Recently, Azrieli also secured non-recourse financing of 592 million euros for a Frankfurt project from foreign lenders. This project will provide 36 megawatts of digital data storage and processing services, with an option for an additional 18 megawatts. The client, believed to be a major tech firm, has signed a 15-year lease with a 15-year extension option. The company estimates average annual revenue of approximately 51 million euros from this project, with Azrieli's share at about 25.5 million euros. The total project cost, including financing, is estimated at 450 million euros, with Azrieli's investment reaching around 252 million euros.
The Azrieli Group's major entry into the data center market occurred in 2021 with the acquisition of Green Mountain for approximately 2.8 billion shekels. Green Mountain, operating six facilities primarily in Norway, leverages low electricity costs from renewable sources and cooler ambient temperatures to reduce cooling expenses. Previously, Azrieli had considered listing Green Mountain on the London Stock Exchange at a valuation exceeding 11 billion shekels.
Mentioned
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
