The Goodman Group (ASX: GMG) share price is in focus after announcing a new A$14 billion European data centre partnership with Canada Pension Plan Investment Board. The joint venture aims to develop a major data centre portfolio across key European cities.
What did Goodman Group report?
- Launched a 50/50 A$14 billion (â¬8 billion) partnership with CPP Investments targeting European data centres
- Initial capital commitment of A$3.9 billion (â¬2.2 billion) for portfolio development
- Projects span four developments in Frankfurt, Amsterdam, and Paris with 435 MW of primary power and 282 MW IT load
- All projects have secured power, planning permits, and advanced site works
- Transaction due to complete in phases by March 2026, subject to closing conditions
What else do investors need to know?
This partnership broadens Goodman Group’s portfolio, bolstering its presence in the rapidly growing data centre sector. The so-called FLAP markets â Frankfurt, London, Amsterdam, and Paris â are sought after due to their strong demand for cloud and AI infrastructure.
Importantly, the partnership leverages Goodman’s powered landbank and local development expertise alongside CPP Investments’ track record in digital infrastructure. Construction is slated to begin by 30 June 2026, potentially supporting Goodman’s long-term earnings growth.
What did Goodman Group management say?
Group CEO Greg Goodman said:
A portfolio of this size and quality â located in Europe’s FLAP markets â is rare. These powered locations are highly sought after to meet the rapidly growing requirement for cloud computing and AI adoption, particularly when they offer speed to market and delivery certainty. The quality and scale of this Partnership make it ideal for our long-term relationship with CPP Investments. We’re pleased to be investing alongside them for their entry into the European data centre market.
What’s next for Goodman Group?
Goodman Group expects the new partnership to strengthen its foothold in digital infrastructure, meeting soaring demand for cloud and AI solutions in Europe. By focusing on fully permitted and powered sites ready for rapid construction, Goodman is aiming to capture growth in key gateway markets.
Completion of the transaction is expected in phases through to March 2026. Management continues to seek opportunities with capital partners for further expansion, with data centres forming a core pillar of Goodman’s global growth strategy.
Goodman Group share price snapshot
Over the past 12 months, the Goodman Group shares have declined 20%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
The post Goodman Group announces $14bn European data centre partnership with CPP Investments appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
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