Goodman Group and the Canada Pension Plan Investment Board have agreed to form a major European data center partnership valued at approximately A$14 billion (€8 billion), marking one of the largest commitments to digital infrastructure development in the region to date. The 50/50 venture reflects intensifying investor confidence in Europe’s core data center markets as demand accelerates for cloud services and artificial intelligence workloads.
The partnership brings together Goodman Group and CPP Investments, with an initial equity commitment of A$3.9 billion (€2.2 billion). Operating under the name Goodman European Data Center Development Partnership, the venture is designed to establish a portfolio of large-scale data center campuses in Europe’s most capacity-constrained and strategically important metropolitan areas.
The initial portfolio comprises four projects across Frankfurt, Amsterdam, and Paris, often referred to collectively as Europe’s FLAP markets. Together, the developments represent 435 megawatts of primary power capacity and 282 megawatts of IT load, positioning the partnership to serve hyperscale cloud providers and enterprise customers with high-density computing requirements. The sites include two locations in Paris, one in Frankfurt, and one in Amsterdam, each with secured power connections, planning approvals, and advanced site infrastructure already in place.
According to both partners, the projects are designed to deliver speed to market at a time when new data center supply in Europe is constrained by power availability, permitting timelines, and land scarcity. Construction across the portfolio is expected to begin by June 30, 2026, subject to final conditions, with the transaction scheduled to complete in stages through March 2026.
For CPP Investments, the deal represents its first direct data center partnership in Europe and a significant expansion of its global digital infrastructure exposure. The pension fund has increasingly targeted assets that benefit from long-term structural trends, including cloud adoption, AI deployment, and data sovereignty requirements. By partnering with Goodman, CPP Investments gains access to a pipeline of powered land and development expertise in markets where barriers to entry are high.
Goodman, meanwhile, continues to scale its data center platform globally, leveraging its industrial property footprint and relationships with power providers and municipalities. The company has emphasized that the rarity of securing large, powered sites in Europe’s Tier 1 markets makes portfolios of this size increasingly difficult to replicate, particularly as demand from hyperscalers and AI-driven enterprises intensifies.
The two organizations are not new partners. Since 2009, Goodman and CPP Investments have collaborated across Australia, Asia, the Americas, and parts of Europe, including prior data center ventures in Japan and Hong Kong. The European partnership builds on that history while aligning with both firms’ long-term strategies around digital infrastructure investment.
As Europe grapples with growing compute demand and limited new supply, the partnership highlights how institutional capital is moving decisively into data centers as a core asset class, reshaping the region’s digital landscape.
Executive Insights FAQ
Why are Frankfurt, Amsterdam, and Paris central to this deal?
They are Europe’s most established data center hubs, offering strong network connectivity but facing severe supply constraints.
What makes this partnership strategically important for CPP Investments?
It marks CPP Investments’ first European data center venture, expanding its global digital infrastructure portfolio.
How large is the initial development pipeline?
The portfolio includes four projects totaling 435 MW of power capacity and 282 MW of IT load.
When will construction begin?
The partners expect to start construction by mid-2026, subject to final closing conditions.
What demand drivers are shaping this investment?
Rapid growth in cloud computing, AI adoption, and enterprise digitalization across Europe.
