Overview of the Acquisition#
3i Infrastructure has announced its intention to invest around €300 million to acquire a majority stake in Lefdal Mine Datacenter (LMD), located on Norway's west coast. This data center campus is currently operational and has a capacity of 37 megawatts (MW) to serve its clients, with an additional 43 MW of capacity under construction.
Unique Features of Lefdal Mine Datacenter#
LMD stands out due to its underground location, which helps in utilizing closed-loop seawater cooling technology. This method enhances energy efficiency and takes advantage of Norway's low-cost electricity. The data center operates under contracts that are linked to inflation and are based on availability, primarily serving financial institutions and government agencies. Significant investments in hardware and tailored infrastructure help maintain high customer retention rates.
Financial Details of the Deal#
The acquisition will see 3i Infrastructure purchasing LMD from a fund managed by Columbia Threadneedle, with the fund's largest investor also participating in the deal. The total investment related to this transaction is expected to be around €400 million, which includes a small number of renewable energy assets, such as three wind farms in Sweden and two hydroelectric facilities in Italy. These renewable assets account for less than 10% of the total transaction value.
Future Plans and Financing#
The completion of this acquisition is anticipated in the summer of 2026. To prepare for future investments while awaiting €1.14 billion from the sale of TCR, 3i Infrastructure has activated a €300 million accordion feature on its revolving credit facility, raising its total to £1.2 billion. This move provides the company with greater flexibility in managing its investments.