Major Pivot for German Real Estate Giant
Aroundtown, one of Europe’s leading real estate companies, has revealed plans for its inaugural data centre in Germany, aiming for operations within the next three years. The new facility will mark a significant shift from the company’s core business of office, hotel, and residential property management towards the rapidly growing digital infrastructure sector[1][3].
Conversion of Existing Properties
The Luxembourg-based Aroundtown is targeting underutilized office spaces for transformation into data centres. The first confirmed project is a 20MW data centre in Frankfurt, planned for Wilhelm-Fay-Straße—a building previously occupied by IBM and strategically located near established operators such as Digital Realty and CyrusOne[1].
- Conversion efforts focus on repurposing legacy office assets.
- The Berlin data centre is scheduled to become operational within three years.
- The Frankfurt project is still awaiting approval for power supply.
- Around 100 of Aroundtown’s portfolio properties are under review for potential conversion.
Challenges Facing Development
Regulatory approval and access to reliable power are cited as significant hurdles for data centre conversions in Germany. Timothy Wright, Aroundtown’s head of investor relations, stated that while one permit has been secured for Frankfurt, the electric capacity needed for optimal operation is still under negotiation with local power suppliers[1].
- Obtaining municipal permits is a time-consuming process.
- Energy supply confirmation is essential before construction can begin.
- Aroundtown is actively seeking partnerships with specialist data centre operators to build up IT expertise and expedite development[1][3].
Strategic Importance of Data Centres in Europe
Germany, alongside the UK and France, hosts more than 60% of Europe’s active data centres, with new facilities seeing sustained investment due to the region’s status as a major financial and digital hub[5]. Aroundtown's expansion into the data centre market aligns with broader trends, as operators seek to capitalize on growth in cloud computing, artificial intelligence—including platforms such as
ChatGPT—and increased demand for enterprise connectivity[5].
Outlook and Industry Impact
According to Aroundtown’s quarterly presentations, once necessary permissions and partnerships are finalized, the company may either sell converted properties for immediate capital or operate the facilities directly for long-term returns. The strategic repurposing of legacy assets reflects both sectoral transformation and investment in Germany’s digital economy[1][8].
As data centre demand accelerates, particularly driven by artificial intelligence and cloud services, Aroundtown’s move signifies both adaptability and ambition in the competitive European market.
