Yondr sells majority stake in Slough data centre campus

ondr has agreed to sell a majority interest in a UK data centre campus to GLIL Infrastructure. It will retain a minority stake and continue to operate the site.

The asset comprises two operational hyperscale data centre buildings in Slough serving a single hyperscale customer. The campus is in one of Europe's most established data centre markets, where demand has been driven by cloud computing and artificial intelligence workloads.

Investment strategy

For Yondr, the deal provides a way to realise value from a mature asset while keeping an ongoing role in operating the campus. For GLIL, it adds a digital infrastructure asset to a portfolio that already includes an investment in Cornerstone, the UK mobile tower company.

Financial terms were not disclosed. The transaction is expected to complete once closing conditions are met and approvals are obtained.

The agreement reflects continued investor interest in data centres as infrastructure funds seek long-duration assets with stable income. It also underscores the appeal of Slough, long a focal point for large data centre developments because of its connectivity and proximity to London.

Operating role

Yondr develops, owns and operates hyperscale data centres globally. It will continue to manage the Slough campus after the sale closes, preserving its relationship with the customer while reducing its ownership position.

GLIL was established by UK pension funds to invest jointly in infrastructure across the UK and Europe. Its investors include LPPI, Greater Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire Pension Fund and Nest.

"This transaction represents another important milestone in Yondr's long-term growth strategy. Bringing GLIL on board as an investment partner allows us to realise value from a high-quality, stabilised asset while remaining invested in its future and continuing to operate the campus on behalf of our customer," said Aaron Wangenheim, Chief Executive Officer, Yondr.

Digital assets

The acquisition adds to GLIL's push into digital assets, an area that has attracted increasing amounts of pension and infrastructure capital in recent years. Investors have been drawn by rising data usage and the need for large facilities to support cloud platforms and AI services.

"Digital infrastructure is increasingly fundamental to the UK's economy, and hyperscale data centres are critical to supporting growing demand for cloud services and artificial intelligence. This investment reflects GLIL's strategy of partnering with high-quality operators to invest in essential infrastructure that delivers resilient, long-term value for our pension fund members," said Lee Belfield, Investment Director, LPPI and GLIL Infrastructure.

"Yondr has developed a high-quality asset with a strong operational track record, and we look forward to commencing a long-term partnership with the Yondr team," added Belfield.

Capital recycling

The deal structure leaves Yondr with both an ownership interest and day-to-day operating responsibility, an approach often used in infrastructure transactions where the incoming investor wants exposure to an established asset while relying on the existing specialist operator to run it.

This may also give Yondr greater flexibility to recycle capital into other developments while keeping a foothold in a market where available power, land and planning remain key constraints. Demand for data centre space around London has continued to attract operators and investors despite those pressures.

Advisers on the transaction included RBC Capital Markets and Linklaters for Yondr, and Nomura and Simpson Thacher & Bartlett for GLIL.