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Australia-based Goodman Group has entered into a major partnership with Canada Pension Plan Investment Board to develop large-scale data centres across key European markets. The joint venture, valued at AUD 14 billion or about USD 9.3 billion, will focus on four projects in Germany, the Netherlands and France. The move strengthens Goodman's growing role in AI-led digital infrastructure and marks CPPIB's first data centre investment in Europe. With power secured and approvals in place, construction is planned to begin before mid-2026, supporting rising demand from hyperscalers.
Australia's Goodman Group has agreed to a partnership worth AUD 14 billion, equivalent to about USD 9.32 billion, with Canada Pension Plan Investment Board to develop data centres across Europe, reinforcing its presence in the region's fast-expanding AI infrastructure market. Advertisement
Demand for data centres has risen sharply over the past year as global technology companies and artificial intelligence hyperscalers have outlined large capital spending plans to expand computing capacity. The tie-up aligns with Goodman's earlier stated strategy to grow its data centre platform alongside its traditional logistics-focused portfolio.
Market observers noted that the agreement highlights a shift in Goodman's business model. According to ETF Shares chief investment officer David Tuckwell, the arrangement shows how Goodman is moving beyond being a logistics specialist to becoming a full AI infrastructure provider. He added that Goodman operates not only as a landlord, but also as developer, operator and equity partner, allowing it to pursue complex, large-scale projects in major global cities without placing excessive pressure on its balance sheet.
Goodman currently has around 5 gigawatts of data centre capacity spread across 13 cities, based on information available on its website. As of September, data centres under construction accounted for 68% of its AUD 12.4 billion development pipeline. To support this expansion, the group raised nearly AUD 4 billion earlier this year, which at the time was the largest capital raising in Australia.
Under the new arrangement, Goodman and CPPIB will hold equal stakes in the venture. The partnership includes an initial funding commitment of AUD 3.9 billion to develop a portfolio of projects located in Frankfurt, Amsterdam and Paris. These four projects span three countries and together provide 435 megawatts of primary power capacity, with an IT load of 282 MW delivered directly to servers and computing equipment.
Goodman said all sites are designed for quick delivery, with power connections secured, planning approvals in place and advanced site infrastructure completed. This setup is expected to allow construction to begin by June 30, 2026. The announcement was welcomed by investors, with Goodman's shares rising sharply and touching their highest level since early November before ending the session significantly higher.
Source Reuters
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