Private investment firm, Starwood Capital, is to buy a 50% stake in Echelon Data Centres for €850m.
The investment puts an enterprise value on the data centre building company of €2.5bn.
The money is coming from Starwood Opportunity Fund XII and Starwood Real Estate Income Trust.
Echelon has also secured a new €900m debt facility provided by Morgan Stanley and United Overseas Bank.
Echelon was founded in 2016 and has grown to become a leading data centre developer in Ireland and the UK.
It currently has 140MW of capacity that is either operational or in late-stage construction, including a fully pre-committed 91.4MW hyperscale campus in Dublin.
It also has a strategic landbank in excess of 500MW, of which 168MW is in advanced stages of agreement with occupiers and expected to commence construction in the first half of this year.
"We are very pleased to enter into this transaction with our long-standing partner, Starwood Capital," said Niall Molloy, CEO & and Founder of Echelon Data Centres.
"Starwood Capital's scale, access to capital and track record position Echelon incredibly well to service our customers’ growth requirements on global basis."
Over the last five years Starwood Capital has committed around $8 billion of capital across 1.5 gigawatts of capacity in various stages of development.
"Starwood Capital is delighted to announce this investment in Echelon. It is a testament to the business the Echelon team has built since 2016 to establish a leading European data centre platform," said Lorcain Egan, Co-Head, Europe, Starwood Capital Group.
