Castleforge, a prominent UK real estate investor, has joined forces with Galaxy Data Centers in a landmark acquisition of the Redhill Data Center Campus, located just south of London. The £100 million deal signals a significant investment in the growing demand for data center infrastructure, especially with the rise of AI, cloud computing, and edge computing technologies.
This strategic acquisition involves the former Digital Realty-operated LGW10 facility, now transitioning to a new phase under Castleforge and Galaxy’s management. The deal highlights the companies’ commitment to expanding their footprint in the data center industry, especially in the UK, a key market for digital infrastructure.
Redhill Data Center Campus Overview
Location and Facility Size
The Redhill Data Center Campus is situated within the Foxboro Business Park in Surrey, a well-connected area south of London. Spanning across 7.8 acres, the facility consists of three buildings with a combined total of 160,000 square feet (approximately 14,865 square meters) of space. It is currently equipped with 26 MW of total power capacity.
Tenants and Available Capacity
The site hosts 26 tenants, offering them a robust and reliable infrastructure. There is 2 MW of available capacity, providing room for new clients seeking to leverage the data center’s advanced features and connectivity.
Fiber Providers and Connectivity at Redhill Data Center
One of the major advantages of the Redhill campus is its broad range of fiber providers. These include Zayo, BT, Colt, Cogent, Verizon, Lumen, Virgin, and Interoute. This variety of connectivity options ensures that customers have access to high-speed, low-latency networks that are critical for today’s data-heavy applications.
Future Expansion Plans and Capacity Increase
Both Castleforge and Galaxy Data Centers are focused on increasing the capacity of the Redhill campus. According to a brochure from Galaxy, a 15 MW expansion is already in the works to meet the growing demand for data center space, especially from hyperscale and edge computing clients.
This expansion aligns with the increasing pressure on data centers to support digital transformation, driven by cloud computing, AI, and IoT technologies.
The Significance of This Acquisition in the UK Data Center Market
A Key Investment for Castleforge
Founded in 2010, Castleforge has traditionally invested in real estate properties in and around major cities in the UK and Europe. The Redhill acquisition marks the company’s first venture into the data center space. Adam MacLeod, Partner at Castleforge, emphasized that the accelerated demand for data centers, driven by advancements in AI and cloud computing, made the Redhill campus an attractive investment opportunity.
Galaxy Data Centers’ Role in the Deal
Galaxy Data Centers, part of Galaxy Capital Partners, has been a key player in this deal. Since its inception in 2016, the company has built a global portfolio of enterprise data centers across North America, Europe, and Asia. With their expertise in owning, operating, and developing high-performance data centers, Galaxy is well-positioned to oversee the expansion and ongoing management of the Redhill campus.
The Path Forward: Meeting Tomorrow’s Data Demands
Dave Misra, Managing Partner at Galaxy Data Centers, emphasized the long-term vision for the Redhill site. With a current capacity of 26 MW and plans for an additional 10-15 MW of build-to-suit capacity, the site is well-equipped to handle future demand from edge, hyperscale, and enterprise customers. The data center is poised to support the digital landscape’s rapid evolution, addressing the needs of industries that rely on cutting-edge computing and storage capabilities.
What This Acquisition Means for the UK Data Center Industry
The Redhill acquisition by Castleforge and Galaxy Data Centers reflects the growing trend of private investment in the UK’s data center market. With the ongoing rise in data consumption, fueled by AI, cloud computing, and digital transformation, the demand for state-of-the-art data centers is expected to increase in the coming years. The Redhill campus, with its strategic location and planned capacity expansion, positions Castleforge and Galaxy as key players in shaping the future of the UK’s digital infrastructure.
FAQ Section
1. Why is the Redhill Data Center acquisition significant?
The acquisition represents a strategic move by Castleforge and Galaxy Data Centers to tap into the growing demand for digital infrastructure in the UK. The Redhill site is well-positioned for expansion, with plans to increase power capacity to meet future demands from hyperscale, edge, and enterprise clients.
2. Who are the fiber providers at Redhill Data Center?
Redhill offers a wide range of fiber providers, including Zayo, BT, Colt, Cogent, Verizon, Lumen, Virgin, and Interoute, ensuring high-speed, reliable connectivity for tenants.
3. What is the planned expansion for Redhill Data Center?
Castleforge and Galaxy plan to expand the Redhill campus by 10-15 MW to accommodate the increasing demand for digital infrastructure, particularly from edge computing and hyperscale clients.
4. How does this acquisition impact the UK data center market?
The acquisition highlights the growing importance of data centers in the UK, driven by advancements in AI, cloud computing, and digital transformation. The expansion plans at Redhill are set to meet the evolving needs of industries requiring more power and space.
5. What role does Galaxy Data Centers play in the acquisition?
Galaxy Data Centers, part of Galaxy Capital Partners, will manage the operations and expansion of the Redhill campus, leveraging their global expertise in data center ownership, operation, and development.
