(Bloomberg) – Arjun Infrastructure Partners is in advanced discussions to acquire a minority stake in the mature assets portfolio of French data center operator Data4, which is currently owned by Brookfield Infrastructure Partners. The deal highlights growing investor interest in data center infrastructure, driven by the rising demand for cloud computing, AI, and digital connectivity.

Key Deal Highlights

• Arjun Infrastructure Partners, a specialist investor in essential infrastructure assets, is negotiating to acquire a minority stake in Data4’s portfolio.
• Data4, backed by Brookfield Infrastructure Partners, is a leading European data center operator, providing cloud and colocation services across multiple markets.
• The potential investment underscores strong demand for digital infrastructure, as AI, 5G, and cloud computing continue to fuel data center expansion.

Why This Deal Matters

1. Booming Data Center Industry:
   • The rise of artificial intelligence, edge computing, and cloud adoption has made data centers critical assets for institutional investors.
   • Investors are increasingly seeking stable, long-term returns from high-demand digital infrastructure.
2. Brookfield’s Strategy:
   • Brookfield Infrastructure Partners, which acquired Data4 in 2023, may be looking to monetize part of its stake while retaining control over growth initiatives.
   • This aligns with Brookfield’s model of leveraging co-investments to fund large-scale infrastructure projects.
3. European Digital Expansion:
   • Data4 has been expanding its footprint across Europe, with a focus on France, Italy, Spain, and Germany.
   • The potential deal could provide fresh capital for further expansion, including new data center developments.

What’s Next?

If finalized, this deal could mark another major investment in the European data center market, reinforcing the sector’s appeal to infrastructure funds and institutional investors. The increasing global reliance on AI, cloud computing, and high-speed connectivity ensures that data center assets remain a key focus for long-term capital deployment.