Castleforge and Galaxy in Redhill Data Centre deal

A real estate investor and data centre operator have teamed up to buy a Surrey base.

Castleforge and Galaxy Data Centers have snapped up Redhill Data Centre, in Foxboro Business Park.

The venture is a first for Castleforge in the data centre sector, with bosses saying they are keen to leverage Galaxy's data and energy infrastructure expertise.

The 11,800sq metre campus houses three buildings and is already home to 26 tenants, including Fortune 500 companies, with green energy access, low-latency connectivity to hubs such as Slough, as well as scalable infrastructure.

Castleforge, which has invested approximately £1 billion of asset value throughout the UK and Europe since it was founded in 2010, plans to expand the data centre’s capacity to meet surging demand, driven by advancements in AI and hybrid cloud computing. 

Adam MacLeod, partner at Castleforge, said: “Data centres have been an attractive prospect that we have been monitoring for some time, but with advancements in AI and cloud computing accelerating demand, we have been eager to find the right opportunity in which to invest. 

“The sector also fits within our speciality of operational real estate investment, and we see this as a logical extension to our existing capabilities.

“Redhill Data Centre’s proximity to London means it offers an important hub for digital services that require fast connections to the capital.  

“With no sign of digital innovation slowing down, we felt this was the right time to make a financial commitment to the market and believe there will be significant further opportunities to come.”

Paul Leong, chief financial officer at Galaxy Data Centers, added: “Redhill presents a rare opportunity to acquire a high-performing data centre in the prime London market, with strategic potential for expansion in both power and scale. 

“We see tremendous growth potential to expand the facility’s power capacity and grow Redhill’s customer relationships.”

The deal was brokered by CBRE and financed by ICG Real Estate. 

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