Local Pensions Partnership Investments (LPPI) has announced that The London Fund will acquire a significant minority stake in London-based VIRTUS, one of the leading and fastest-growing hyperscale data centre platforms in London, Europe’s largest data centre market.
VIRTUS is an award-winning, pure-play data centre owner-operator that offers digital infrastructure to provide connectivity and access to online services for residents and businesses in London and beyond.
With some of the world’s largest hyperscalers amongst its clients, the business provides intelligent solutions to improve the storage, retrieval, management and security of data across global networks.
Established in 2008, VIRTUS currently comprises 11 sites in and around London, with a combined capacity of more than 100 megawatts. The business aims to build more sites in the Greater London area in line with increasing data needs, while beginning to expand its operations into Europe.
The investment also delivers on the fund’s Positive Social Outcomes promise by supporting London’s digital ecosystem through a data centre platform which matches its electricity consumption to 100% renewable energy procurement. This is alongside its wider commitment to net zero by 2030 and efficient water and energy usage.
Richard Tomlinson, chief investment officer, Local Pensions Partnership Investments, said: “Digital infrastructure has been driven by long-term tailwinds including growing data consumption and the development of cloud computing and the success of VIRTUS is testament to this.
“With this investment, we’re pleased to be supporting a key global player in a rapidly growing sector, enhancing London’s digital ecosystem, whilst also proving that commercial success and a commitment to net zero can be compatible business goals.”
The acquisition is a co-investment agreed with Macquarie Asset Management.
Phil Peters, head of Macquarie Asset Management’s client solutions group, said: “The London Fund’s objective of investing in assets that have positive benefits for Londoners very much aligns with our responsibility and opportunity to drive positive change for all our stakeholders through our investments.”
VIRTUS is The London Fund’s first infrastructure investment, a core investment pillar, and its fourth major investment following its recent co-investment in sustainable office tower, EDGE London Bridge, and a £30 million commitment in YOO Capital Fund II.