Information on the Target

On June 25, 2025, HOCHTIEF PPP Solutions GmbH and infrastructure investor Palladio Partners signed a purchase agreement for a site in Dorfen designated for the construction of a YEXIO data center. This high-tech facility will be built on approximately 7,500 square meters located in the Dorfen-Southwest industrial area, right next to the A94 motorway. The project will be executed by HOCHTIEF Data Center Partner GmbH in the Erding district near Munich, under the direction of YEXIO Dorfen GmbH & Co. KG.

The YEXIO data center aims to provide essential data processing capabilities for local businesses, while also focusing on sustainable operations. The excess heat generated by the facility will be integrated into the district heating network managed by the municipal utilities in Dorfen. Construction is set to commence in spring 2026, with the facility anticipated to be operational by mid-2027.

Industry Overview in Germany

The digital infrastructure sector in Germany is rapidly evolving, driven by an ever-increasing demand for decentralized and high-performance data processing. As the nation promotes digital transformation, there is a pressing need for sustainable, secure data centers that serve local businesses and communities effectively. This growth reflects a broader trend in the European market, with an emphasis on green technologies and renewable energy.

In Germany, the move towards sustainable economic practices is not just beneficial for the environment, but also enhances competitiveness within the thriving digital economy. The YEXIO facilities within this sector are designed to meet specific regional needs, providing tailored solutions that emphasize data sovereignty and close proximity to clients. This local focus is crucial for sectors that prioritize data security and regulatory compliance.

Furthermore, industry players are increasingly recognizing the importance of integrating renewable energy solutions into their operational models. The planned utilization of waste heat from the Dorfen data center exemplifies how innovative approaches can create synergistic benefits for both infrastructure providers and the environment. This aligns with governmental initiatives aimed at fostering sustainable urban development.

Overall, the German digital infrastructure landscape presents a ripe opportunity for investments as cities enhance their capabilities to adapt to a digitally-driven economy. Projects like the YEXIO facility signal a commitment to developing future-proof solutions that address both current needs and future challenges.

The Rationale Behind the Deal

The partnership between HOCHTIEF and Palladio Partners underscores a strategic investment in Germany's digital infrastructure, emphasizing the growing needs of the local economy. The YEXIO concept promises not only to meet the urgent demand for increased data processing capabilities but also to implement sustainable practices that align with the environmental goals of the region.

With a focus on energy efficiency and minimizing carbon footprints, the project is positioned as a critical contributor to both the local economy and the overarching sustainability objectives of Dorfen. This dual focus enhances the attractiveness of the investment for stakeholders who prioritize corporate social responsibility as well as financial returns.

Information About the Investor

Palladio Partners has been an active player in the infrastructure investment landscape for over a decade, primarily investing long-term capital from German institutional investors. With over €10 billion in managed assets, Palladio is recognized as a leader in this sector, particularly focusing on sustainable digitalization projects since 2019.

By investing in the Dorfen YEXIO data center, Palladio Partners is reiterating its commitment to enhancing Germany's digital infrastructure. Dr. Stephan Küßner, Managing Director at Palladio Partners, highlights that this project exemplifies a collaborative approach to driving digital transformation, with a focus on developing future-ready infrastructure capable of supporting sustained growth.

View of Dealert

The establishment of the YEXIO data center in Dorfen is a noteworthy investment opportunity that embodies both immediate economic benefits and long-term sustainability objectives. As digital processing requirements escalate, this facility will serve as a crucial asset for local businesses, positioning the region to better compete in an increasingly digital world.

Moreover, the project's integration of renewable energy solutions further enhances its viability as a smart investment. By feeding excess heat back into the local heating network, the data center aligns with eco-conscious operations that appeal to socially responsible investors.

The foresight demonstrated by both HOCHTIEF and Palladio Partners in addressing regional needs while promoting sustainable practices signifies a smart strategic move. As environmental impact becomes a central consideration in investment decisions, the YEXIO data center sets a precedent for future developments in the digital infrastructure space.

Overall, this investment appears to be well-timed and strategically aligned with broader market trends, making it a promising venture that stands to yield beneficial outcomes for both the investors and the local community in the years to come.

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