Goodman Group and Canada Pension Plan Form $9.3B European Data Center Partnership

• The deal represents 68% of Goodman's A$12.4 billion development portfolio, signaling the company's strategic shift from logistics to AI infrastructure provider
• All four projects have secured power connections and planning permits, with a total IT load capacity of 282 MW to serve tech giants and AI hyperscalers
• Goodman raised A$4 billion earlier this year (Australia's largest capital raising at the time) specifically to fund data center expansion plans

Goodman Group Partners with CPPIB for $9.3B European Data Center Venture

Australia's Goodman Group has formed a 50-50 joint venture with Canada Pension Plan Investment Board (CPPIB) worth A$14 billion ($9.32 billion) to develop data centers across Europe, marking CPPIB's first European data center partnership. The initial commitment of A$3.9 billion will fund four projects totaling 435 megawatts of primary power and 282 MW of IT load across Frankfurt, Amsterdam, and Paris.

The partnership reflects Goodman's strategic pivot from logistics specialist to AI infrastructure provider, capitalizing on surging demand from tech giants and AI hyperscalers. Data centers now comprise 68% of Goodman's A$12.4 billion development portfolio as of September, compared to its current operational capacity of 5 gigawatts across 13 cities globally.

All projects feature secured power connections, planning permits, and advanced site infrastructure, enabling construction to begin by June 30, 2026. The venture allows Goodman to pursue large-scale, complex projects in tier-one cities while maintaining balance sheet flexibility, as the company simultaneously acts as developer, operator, and equity partner.

This deal follows Goodman's A$4 billion capital raising earlier this year—Australia's largest at the time—specifically earmarked for data center expansion. The partnership demonstrates growing institutional investor appetite for AI infrastructure assets, as pension funds seek exposure to the rapidly expanding sector driven by artificial intelligence computing demands.

Market implications suggest continued momentum in data center real estate investment trusts (REITs) and infrastructure plays, with European markets particularly attractive due to regulatory clarity and strong demand from hyperscale operators.