Insights into Data Centre Investment & Market Growth

Australia data centre forecast report launched

Data Centres Australia, an Australian industry body representing data centre developers, operators, and the broader digital infrastructure ecosystem, and DC Byte, a London-based market intelligence firm, have formed a partnership to provide independent market insight and forecasting for the country’s data centre sector. As part of the collaboration, the organisations have published the first Australian Data Centre Forecast Report, offering analysis of current capacity and future development trends. The report estimates that Australia’s operational data centre capacity currently stands at 1.5GW and could reach 3.2GW by 2030. The initiative aims to support policymakers, utilities, and industry stakeholders with more accurate data, as demand for digital infrastructure continues to grow across the Asia Pacific region. The partnership combines Data Centres Australia’s industry network with DC Byte’s global market intelligence, with a focus on improving understanding of development pipelines and long-term capacity planning. Addressing forecasting challenges in Australia The report highlights the challenges of tracking data centre growth, particularly in relation to early-stage developments that do not always progress to completion. This can lead to overstated projections and so-called ‘phantom demand’ within the market. By providing forward-looking forecasts based on industry data and development trends, the partners say they aim to support more informed decision-making across the sector. Data Centres Australia will use DC Byte’s analysis to inform engagement with members and policymakers, while DC Byte will provide briefings and insight sessions as part of the agreement. Belinda Dennett, Chief Executive Officer at Data Centres Australia, comments, "Australia has a significant opportunity to position [itself] as a global hub for AI infrastructure investment and sustainable data centre development." James Murphy, Managing Director APAC at DC Byte, adds, "As data centres become more important to Australia’s digital future, having clear visibility into the market matters." The partnership is intended to support collaboration between industry, government, and investors, while providing broader international context for Australia’s digital infrastructure development.

€50bn Croatia AI data centre investment announced

Pantheon Atlas, a transatlantic-led investment group, has announced plans to develop a hyperscale AI data centre and innovation campus in Topusko, Croatia, with total investment expected to exceed €50 billion (£43 billion). This is reportedly the largest investment of its kind in Croatian history and among the largest private US investments in Europe. The project, known as Pantheon AI, is intended to address growing demand for AI-driven data centre capacity across Europe, where availability of power, land, and construction resources remains constrained. The development is being delivered by a transatlantic investment group combining US capital with local expertise in Croatia, including regulatory and grid access experience. The announcement was made at the Three Seas Initiative Summit in Dubrovnik. Pantheon AI is designed to meet NVIDIA’s gigawatt-scale AI factory standards and is expected to offer high levels of availability, exceeding Tier IV benchmarks. Jako Andabak, Founding Partner at Pantheon AI, comments, "Pantheon AI is a signal to the world that Croatia is open for the highest-caliber investment. "This project is the culmination of years of work to bring world-class digital infrastructure to Croatia." Addressing European data centre capacity Across Europe, established data centre markets are operating with limited vacancy, while grid connection delays continue to affect new developments. Demand in Central and Eastern Europe is expected to increase significantly by 2035, particularly as AI workloads expand and regulatory requirements encourage data to be stored within EU borders. Ryan Rich, Managing Partner at Pantheon AI, explains, "We have assembled a transatlantic partnership to solve one of the most pressing challenges in global digital infrastructure: enabling hyperscale operators to meet AI-driven demand at scale." The project is expected to support up to 5.2 GW of renewable energy integration into Croatia’s grid. It will include an on-site solar installation and battery storage, alongside multiple fibre connections across European network corridors. Joshua Volz, Special Envoy for Global Energy Integration at the US Department of Energy, says, "Critical infrastructure of this scale, built by the private sector responding to real market demand, is exactly how US interests and European security advance together." Construction of the campus is scheduled to begin in early 2027, with operations expected to start in the first quarter of 2029. The initial phase represents a €12 billion (£10 billion) investment, with additional funding anticipated as tenants deploy infrastructure. The campus will have a planned capacity of 1GW, including 800MW of usable IT load, and will span approximately 310 acres (1.2 km²), with expansion potential. The development is expected to create around 1,500 permanent roles, alongside 3,000 jobs during construction.

Vertiv acquires Strategic Thermal Labs

Vertiv, a global provider of critical digital infrastructure, has acquired Strategic Thermal Labs (STL), a company specialising in liquid-cooling technologies for high-density computing environments. The acquisition is intended to strengthen Vertiv’s engineering capabilities in managing the interaction between server-level liquid cooling and supporting infrastructure, which is becoming increasingly important in AI and high-performance computing deployments. Strategic Thermal Labs brings experience in cold-plate design, server-side liquid cooling, and thermal validation for high-density systems. This is expected to support Vertiv’s ability to simulate real-world operating conditions and improve the integration of thermal and power systems. Acquisition targets high-density cooling challenges As computing workloads become more intensive, thermal management at chip level is playing a greater role in overall system performance and reliability. The addition of STL is aimed at improving design, integration, commissioning, and long-term operation of liquid-cooled environments. Scott Armul, Chief Product and Technology Officer at Vertiv, comments, “As AI and high-performance computing push power densities to unprecedented levels, understanding and solving heat challenges at the chip level becomes critical to system design, performance, and reliability. "STL brings deep expertise and proven capability in addressing some of the industry’s most demanding chip-level density and thermal problems, strengthening Vertiv’s ability to emulate and validate system-level solutions and enabling customers to improve performance and lifecycle outcomes in liquid-cooled environments.” Vertiv states that the acquisition will not change its approach to supporting interoperable infrastructure and the company will continue to work with a range of server and silicon platforms. It adds that the move forms part of its wider strategy to address increasing infrastructure complexity through integrated power, thermal, and lifecycle capabilities. For more from Vertiv, click here.

Pure DC expands its Middle East data centres

Pure Data Centres Group (Pure DC), a designer, developer, and operator of hyperscale data centres, has confirmed further investment in the Middle East, including a capacity increase at its Abu Dhabi campus and new development plans in Saudi Arabia. The company has received final approval from TAQA to expand IT capacity at its AUH01 site in Abu Dhabi from 41MW to 48MW. The increase has been achieved through design optimisation and the addition of new power infrastructure, supporting additional demand including AI workloads. The AUH01 campus is located on a 16-acre (64,749m²) site and is designed for phased expansion. One 20MW building is already operational, with initial data hall capacity delivered to a hyperscale customer in 2025. The site uses a combination of air and liquid cooling to support different deployment requirements. Pure DC has also matched 100% of the electricity used at AUH01 in 2025 with International Renewable Energy Certificates (I-RECs), sourced from solar generation at the Mohammed bin Rashid Al Maktoum Solar Park in the UAE. This approach aims to support reduced carbon intensity for operations and contribute to market-based Scope 2 emissions targets. Regional growth plans Alongside its UAE operations, Pure DC has entered a joint venture with Dune Vaults to develop a hyperscale data centre in Riyadh, Saudi Arabia. The RUH01 campus will be built on a 270,000m² site, with an initial design capacity of 57.6MW across two buildings. The development has potential to scale beyond 100MW as demand increases. Gary Wojtaszek, Executive Chairman and Interim CEO at Pure DC, comments, “We remain deeply committed to the Middle East and grateful for support we continue to receive from authorities across the UAE and KSA in the current climate. "Our sites are delivering uninterrupted service, reflecting the resilience and reliability that underpins our presence in the region. While the current macro-political environment may have slowed sector investment, digital demand remains unchanged. "The region’s ambitious national visions recognise the transformation enabled by digital government, enterprise modernisation, and a future-ready workforce. Pure DC is fully committed to contributing to that future through the continued development and operation of world-class digital infrastructure across the Middle East.” For more from Pure DC, click here.

Mitie acquires Nordic data centre security firms

Mitie, a UK facilities management and professional services company, has acquired two fire and security businesses in Denmark and Norway to expand its data centre capabilities across the Nordics. The company has purchased El Team Vest and ABC Elektro for a combined initial cash consideration of £8.1 million, with additional deferred payments linked to performance. The acquisitions are intended to strengthen Mitie’s project delivery and maintenance capabilities in the European data centre fire and security systems market. The group is already active in the sector, supporting clients including Microsoft, Google, and Equinix. El Team Vest, based in Horsens, Denmark, has around 20 years’ experience in electrical design, installation, and maintenance. Its work includes data and fibre networks, fire and security systems, building management systems, and high-voltage electrical connections. Recent projects include electrical retrofit work for Velux, as well as contracting for the headquarters of ABB Group and DSV Logistics. ABC Elektro, based in Horten, Norway, provides fire and security services alongside electrical capabilities such as data connections and building management system installations. The company primarily serves commercial and construction customers in the Oslo region. Nordic expansion driven by data centre growth Demand for data centre capacity continues to grow, driven in part by increased use of AI and machine learning technologies. The Nordic region has become a key location for new developments, supported by renewable energy availability, grid capacity, and cooler operating conditions. Mitie already operates in the Nordic data centre market through its fire and security business, GBE Converge, acquired in 2023. The addition of El Team Vest and ABC Elektro is expected to strengthen its regional presence, with a combined workforce of around 100 employees. El Team Vest will operate as a regional centre of expertise, providing technical and operational support across Mitie’s Nordic activities. For the 12 months to 31 December 2025, El Team Vest reported revenue of £16.6 million and EBITDA of £3.2 million. ABC Elektro reported revenue of £2.7 million over the same period, with break-even EBITDA following investment. Jason Buttle, Managing Director - Fire & Security Projects at Mitie, comments, “The acquisitions of El Team Vest and ABC Elektro strengthen our ability to deliver complex fire, security, and electrical solutions across the Nordics, one of Europe’s most important and fast-growing data centre hubs. "With Mitie’s financial backing and [its] deep technical expertise, strong local reputations, and track records supporting major commercial and technology clients, we expect these businesses to scale up our data centre offering. "We look forward to welcoming their highly skilled colleagues to Mitie as we support our hyperscale and colocation customers in meeting the rapidly increasing demand for data centre capacity.”

LS Electric wins $115m data centre contract

LS Electric, a South Korean manufacturer of electrical equipment and automation systems, has secured a $115 million (£84.9 million) contract to supply power infrastructure for a series of data centre developments across North America. The projects will support major technology companies expanding capacity for artificial intelligence and other compute-intensive applications, where consistent and high-quality power is required. Under the agreement, LS Electric will deliver switchgear and distribution transformers designed for continuous operation in high-demand environments. Expanding North American manufacturing footprint The deal comes at a time as data centre operators are increasing focus on power systems that offer reliability, adaptability, and long-term support as facilities scale to meet rising workloads. Large-scale developments of this kind also require suppliers able to meet strict technical standards while maintaining consistent delivery across manufacturing, logistics, and on-site coordination. LS Electric says it will support the projects from design through to commissioning. To fulfil the contract, LS Electric will utilise its growing industrial presence in North America, including operations in Utah and Texas, such as MCM Engineering II and its Bastrop campus. These facilities will support production and system integration, as well as ongoing regional expansion in engineered power infrastructure. LS Electric states it will continue to expand its offering for the sector, focusing on technologies that support reliable and energy-efficient data centre performance. For more from LS Electric, click here.

Mission Critical Group invests in WattEV

Mission Critical Group (MCG), a critical power infrastructure company, has announced a strategic investment in WattEV to support the development of 800V DC power infrastructure for AI data centres. The partnership focuses on advancing power delivery systems designed to meet the increasing demands of high-density AI workloads, including generative AI and inference applications. As part of the agreement, Mission Critical Group will support the industrialisation and deployment of a medium-voltage solid-state transformer (SST) platform. This technology is intended to enable the transition to 800V DC architectures within large-scale data centre environments. The companies state that traditional AC-based power systems are facing limitations as AI workloads scale, driving interest in alternative approaches to power distribution. The proposed 800V DC architecture enables direct conversion from medium-voltage AC, with the aim of improving efficiency and reducing system complexity. The modular design is intended to support flexible deployment, faster installation, and easier expansion. High-density power delivery Jeff Drees, CEO of Mission Critical Group, says, “We are building the next evolution in modular power delivery. The investment in WattEV highlights our commitment to advancing solutions for ultra-high-density AI workloads, including generative AI and inference.” Michael Maiello, SVP of Innovation at Mission Critical Group, adds, “We are moving beyond incremental improvements to a fundamentally different power architecture. "By converting the ultra-high-power demands of AI directly from medium-voltage AC to 800 VDC, we unlock the full efficiency and performance benefits of 800 VDC distribution.” Salim Youssefzadeh, CEO of WattEV, concludes, “Our technology is already proven in high-power, real-world applications where efficiency and reliability are critical. Together with MCG, we’re bringing that performance into the data centre to accelerate the adoption of 800 VDC architectures with confidence and speed.” The companies state that the collaboration aims to support the deployment of scalable power infrastructure for next-generation AI data centres. For more from Mission Critical Group, click here.

Rebellions, SKT, Arm partner on AI infrastructure

Rebellions, a South Korean semiconductor company, has announced a collaboration with South Korean telecommunications company SK Telecom (SKT) and British semiconductor and software design company Arm to develop AI inference infrastructure for sovereign AI and telecom-focused data centres. The partnership will focus on building an AI server combining an Arm-designed data centre CPU with Rebellions’s AI accelerators. The system will be tested within SK Telecom’s data centre environment before potential wider deployment. The initiative is intended to address growing demand for AI inference infrastructure, particularly in sectors requiring data sovereignty and telecom-specific processing capabilities. The planned platform will integrate Arm’s AGI CPU, based on the Neoverse CSS V3 architecture, with Rebellions’ RebelCard accelerator. The companies will also work together on the supporting software stack, including firmware, to ensure compatibility and performance. Development and validation of the AI server platform Testing will take place in SK Telecom’s operational data centres, where the infrastructure will be assessed for performance and stability. This includes evaluating its suitability for large-scale data processing and AI models used in telecommunications environments. There are also plans to assess the use of SK Telecom’s A.X K1 foundation model on the platform as part of the validation process. Following testing, the companies will consider broader deployment opportunities, with a focus on telecom operators and public sector organisations that require independent AI infrastructure. Jinwook Oh, CTO of Rebellions, says, “We expect this 'one-team' collaboration of experts to serve as a significant precedent in the industry for building AI-specialised infrastructure.” Jaeshin Lee, Vice President and Head of AI Business Development at SK Telecom, adds, “By providing a full package that combines inference-optimised infrastructure with our proprietary foundation model, A.X K1, we will further strengthen our competitiveness in the AI data centre market.” Eddie Ramirez, Vice President of the Cloud AI Business Unit at Arm, notes, “As AI infrastructure expands globally, CPUs play a critical role in coordinating workloads across accelerators, memory, and networking. "Arm AGI CPU, built on Arm Neoverse CSS V3, was designed to deliver the performance and efficiency required for large-scale AI deployments. Together with Rebellions and SK Telecom, we’re enabling scalable infrastructure for sovereign AI and telecommunications markets.”

Stellanor acquires Hemel Hempstead data centre

UK data centre operator Stellanor has expanded its UK data centre platform to 11 facilities following the acquisition of an AI-ready site in Hemel Hempstead from UK semiconductor company Imagination Technologies. The deal, structured as a sale-and-service-back arrangement, will see Imagination Technologies continue operating from the facility as a managed client. Backed by German asset management company DWS, Stellanor says the acquisition brings its secured grid capacity to 39MVA and marks rapid growth from two to 11 facilities within six months. Michael Tobin, Chairman of the Board at Stellanor, comments, "This acquisition demonstrates the quality of infrastructure and tenants we’re attracting. Imagination Technologies is exactly the type of blue-chip technology company we are looking to serve: enterprises with demanding digital infrastructure requirements, from AI and high-performance computing to core enterprise applications and business-critical workloads. “Their decision to continue operating from this facility as a Stellanor client reiterates our strategy to combine investment in growth and improvement of facilities with operational excellence to serve organisations where they actually operate. "We're building a differentiated platform in the UK market with the scale and capability to deliver AI-ready infrastructure around the corner from our clients' operations. “While AI is a fast-growing driver, the majority of enterprise demand continues to come from organisations seeking resilience [and] well-connected infrastructure close to their operations.” Responding to demand for urban, AI-ready infrastructure The Hemel Hempstead site adds to Stellanor’s growing portfolio of urban data centres, supporting demand for infrastructure that combines proximity, resilience, and scalability. Markus Mosen, CEO of Imagination Technologies, explains, “As a global semiconductor IP company, our focus is on delivering high-performance, power-efficient GPU and AI technologies that enable our partners to build next-generation products. “At the same time, maintaining operational resilience across our infrastructure is critical to supporting continuous innovation. Our partnership with Stellanor strengthens this foundation, ensuring we have the robust, scalable environments needed to support our teams while enabling us to remain agile and focused on advancing our core technologies.” Aparna Narain, Partner at DWS, adds, "This acquisition sits at the intersection of two powerful trends: evolving AI growth and enduring demand for urban proximity. It adds proven infrastructure serving a blue-chip technology tenant to Stellanor. “We're creating a differentiated category in the UK market, combining urban focus with the scale and financial capability to deliver high-performance, AI-ready infrastructure that supports the full range of enterprise requirements - from core IT to evolving digital and cloud workloads.” Stellanor’s platform now spans locations including London, Reading, Cambridge, Woking, Gatwick, West Yorkshire, and Hemel Hempstead. The company launched in September 2025 with two London facilities acquired from Colt Technology Services and is progressing a further expansion through the acquisition of eight UK data centres from Redcentric (expected to close in the coming months). For more from Stellanor, click here.

Legrand acquires TES in data centre push

Legrand, a French multinational infrastructure products manufacturer, has acquired TES - including TES Power, a provider of power distribution equipment and modular electrical rooms for data centres - as part of its ongoing expansion in the data centre sector. The deal forms part of Legrand’s wider acquisition strategy, which also includes the purchase of Chinese rack manufacturer Keydak. The company says the latest transactions are intended to strengthen its position in data centre infrastructure, particularly in compute environments and critical power systems. TES, headquartered in Cookstown, Northern Ireland, employs around 300 people and reports annual revenue of £72 million. The business supplies power distribution equipment to the European data centre market, as well as the UK and Irish utility sectors. In recent years, TES has expanded its manufacturing capacity, including the opening of a 300,000ft² (27,870m²) facility in County Derry. The site supports production of low-voltage power distribution equipment for data centre and infrastructure projects. An acquisition supporting data centre growth plans Legrand states that TES generates a significant proportion of its revenue from data centres, aligning with its focus on digital infrastructure. This acquisition of TES, alongside Keydak, adds an estimated €285 million (£248.8 million) in combined annual revenue. Benoît Coquart, Chief Executive Officer at Legrand, says, “These two new transactions strengthen our position in the data centre market, both in compute infrastructure (around the chip) and in critical power. "With these announcements, a total of four acquisitions have been announced this year, all in data centres, which accounted for 26% of our revenue at the end of 2025.” TES says it will continue to operate from its existing sites in Cookstown and County Derry, maintaining its current workforce and manufacturing operations. Brian Taylor, CEO of TES, notes, “Joining Legrand is a landmark moment for TES. Over the past number of years, we have scaled our operations at an incredible pace, and this acquisition is a testament to the hard work and expertise of our entire team. "Legrand’s global reach and market-leading position in the electrical sector provide the perfect platform for TES to further expand our international presence.” Noel McCracken, Managing Director of TES, adds, “Our mission has always been to provide innovative, high-quality engineering for critical infrastructure. "With the support of Legrand, we can accelerate our investment in state-of-the-art manufacturing and continue to lead the way in both the water and power critical infrastructure markets.”