Target Information

The YEXIO data center, which officially launched today in Heiligenhaus, marks a significant milestone for sustainable digital infrastructure in Germany. Developed by HOCHTIEF PPP Solutions and Palladio Partners, this project is the first of its kind nationwide and will be the cornerstone for a network of 15 decentralized Edge data centers throughout Germany. Positioned within the economically robust triangular region of Düsseldorf-Essen-Wuppertal, this facility provides cutting-edge digital infrastructure to meet the dual needs of regional businesses and sustainability.

The core user of the new facility, Yorizon, will deliver sustainable cloud computing and green IT services aimed at a diverse clientele ranging from software and platform providers to SMEs and public institutions. This data center serves as an essential hub for future-oriented digital services, providing local data processing and storage capabilities crucial for industries relying on advanced technologies, including Industry 4.0, IoT, and AI.

Industry Overview in Germany

Germany’s data center market is experiencing significant growth, projected to expand at an annual rate of almost 20% globally by 2030. Edge data centers, in particular, are forecasted to have a remarkable market increase from approximately 13 billion USD in 2024 to an estimated 48 billion USD by 2033, representing an impressive annual growth rate of 15.6%. This trend is directly translatable to the German market, which is characterized by increasing demand for localized data processing and the integration of advanced technologies.

In light of geopolitical challenges, businesses require enhanced sovereignty over their data, and with its geographical proximity to the regional economy, the YEXIO data center addresses this necessity. By allowing companies to process and store their data locally, it becomes a pivotal factor for ensuring operational responsiveness and competitiveness within the framework of rapidly evolving digital landscapes.

The YEXIO facility is constructed on a nearly 9,000 square meter site in the Heiligenhaus Innovation Park and adheres to the highest security standards. The sustainable construction utilizing solid wood reduces CO2 emissions by 600 tons compared to traditional methods and features a green facade that promotes biodiversity. Additionally, an innovative water cooling system enhances energy efficiency by repurposing waste heat to benefit the local community pool, providing an example of smart sector coupling.

Rationale Behind the Deal

The establishment of the YEXIO data center represents an integral step towards building sustainable digital infrastructure that meets the evolving demands of both the market and local businesses. By investing in cutting-edge technology and sustainable practices, the consortium between HOCHTIEF and Palladio Partners aims to fortify Germany's position as a leader in digital solutions and environmentally conscious infrastructure.

The investment also reflects a strategic vision to address increasing data capacity demands and elevate regional competitiveness. By harnessing localized data centers, businesses in the area can achieve enhanced data sovereignty, ensuring reliability and responsiveness amid fluctuating market conditions.

Investor Information

HOCHTIEF is a globally recognized provider of infrastructure solutions, holding strong positions across various markets, including North America and Australia, with a rapidly growing footprint in high-tech, energy transition, and sustainable infrastructure sectors. The company's dedication to sustainability is evidenced by its portfolio, where nearly 50% of revenues stem from green initiatives. With a workforce of approximately 43,600 and an annual revenue of 33.3 billion euros in 2024, HOCHTIEF continues to lead in construction management and green building.

Palladio Partners, founded in Frankfurt in 2012, specializes in private markets with a robust track record in infrastructure investments. Managing over 10 billion euros, the firm focuses on creating value through sustainable investments in Germany's digital infrastructure. As a signatory of the United Nations Principles for Responsible Investment (UN PRI), Palladio Partners demonstrates its commitment to integrating sustainability within its investment strategies.

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The launch of the YEXIO data center in Heiligenhaus represents a pivotal development for sustainable digital infrastructure in Germany. With the forecast for rising demand for data processing capabilities and the push for sustainability, this investment aligns well with industry trends and regional needs. From an investment perspective, the consortium's strategy emphasizes not only current market needs but also future growth opportunities, particularly in cutting-edge technologies like AI and IoT.

Furthermore, the geographical positioning of the data center enhances data transfer efficiency crucial for businesses looking to leverage real-time data. This aspect significantly improves the attractiveness of the project, encouraging more companies to consider their data sovereignty and localized processing solutions. With sustainability integrated into its core operations, the YEXIO center sets a benchmark that could sway public policy and inspire other private enterprises to follow suit.

Overall, the investment is expected to yield long-term benefits not just for the stakeholders but also for the Heiligenhaus community, contributing to economic growth while promoting sustainability. Given the strategic importance of this infrastructure, it is reasonable to assert that the YEXIO data center could become a leading example of how investments in digital infrastructure can be effectively aligned with sustainable development goals.

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