Data center operator Iron Mountain, has just announced the formation of a €300 million joint venture with an affiliate of AGC Equity Partners to develop and manage a Frankfurt data center.

The London-based global alternative asset manager AGC, has built a global data center franchise over the past several years and in this new Joint Venture, will own an 80% equity interest via cash investments while Iron Mountain will own a 20% equity interest in the Venture.

“We are pleased to partner on the Frankfurt Data Center with AGC, a premier real estate and private equity investor with a strong global data center platform, to support this exciting data center growth opportunity and to continue to build-out our global platform,” said Mark Kidd, Executive Vice President and General Manager of Data Centers at Iron Mountain.

“This partnership represents an important strategic step towards our goal of identifying alternative sources of capital to fund accelerating growth, as proceeds from the Venture will be redeployed into higher return development opportunities.”

The Frankfurt hyperscale data center is a 280,000 square foot facility that is designed to feature 27MW of power capacity. As announced, this data center is 100% pre-leased to a U.S.-based customer subject to a 10-year lease agreement. Iron Mountain will be responsible for managing the design and development of the data center as well as administering the Lease.

The full-build of this data center is expected in the second quarter of 2022. Debt financing for the Venture is also scheduled to close in Q4 2020, with proceeds expected to fund a portion of the planned development and construction costs.

Few weeks earlier, Iron Mountain announced the signing of a 6MW data center pre-lease agreement with a US-based customer at its new AZP-2 data center in Phoenix, Arizona. This facility is a three-story purpose-built hyperscale data center which is expected to span more than 530,000 gross square feet, and deliver 48MW of total IT capacity at full build.