NEWARK, N.J. – PGIM Real Estate has closed its first Global Data Center Fund (GDCF) at $2 billion, marking a significant step in the firm’s expansion into digital infrastructure investments. The fund, which focuses on hyperscale data centers, has attracted capital commitments from a diverse group of global investors.
The GDCF follows a build-fill-sell investment strategy, targeting high-growth markets across North America, Asia-Pacific, and Europe. Since its first close in July 2023, the fund has been assembling a geographically diversified portfolio, leveraging PGIM Real Estate’s decade-long expertise in the sector.
A Booming Market for Data Centers
The fund’s success reflects a growing investor appetite for digital infrastructure, driven by the surging demand for cloud computing, AI, and digital connectivity. Morgan Laughlin, Global Head of Data Center Investments at PGIM Real Estate, emphasized the sector’s increasing importance.
“Data centers are at the heart of the digital framework that is playing an increasingly critical role across our economy and society. In line with the recognition of the importance of digital infrastructure in our modern lives, global investors are rapidly increasing their exposure to the sector,” Laughlin said.
The GDCF operates with an operator-independent approach, partnering with leading data center operators through development joint ventures. This flexibility enables access to supply-constrained markets while ensuring an emphasis on ESG considerations, including green building certifications.
Strong Investor Confidence & Deployment Plans
PGIM Real Estate’s capital-raising efforts included a distribution partnership with a leading global private bank, further broadening its investor base. The fund has already allocated $450 million in equity capital to data center investments and expects to deploy the remaining funds within 18 months.
Raimondo Amabile, co-CEO of PGIM Real Estate, highlighted the long-term potential of digital infrastructure investments.
“We see a significant opportunity to develop expertise in the data center space and create a wider digital infrastructure platform. Data centers, and other associated digital infrastructure, offer a generational investment opportunity as the digital demands of our societies and economies continue to expand at an astounding pace,” Amabile said.
PGIM Real Estate’s Growing Digital Infrastructure Ambitions
As the world’s third-largest real estate investment manager, PGIM Real Estate manages $206 billion in gross assets across 35 cities worldwide. The firm’s expansion into digital infrastructure aligns with a broader industry trend of integrating real estate and technology to meet modern demands.
With hyperscale data centers serving as the backbone of the digital economy, PGIM Real Estate’s $2 billion fundraise positions it to capitalize on a rapidly evolving market, offering investors exposure to one of the most transformative sectors in the real estate landscape.
