BGO’s $260 Million Data Center Fund Signals Major US Infrastructure Expansion

Major Funding for Digital Infrastructure

Real estate investment management firm BentallGreenOak (BGO) has successfully closed a $260 million data center co-investment fundraise, marking a significant milestone in the company‘s expanding digital infrastructure strategy. The funding, established alongside BGO’s US Industrial Strategies I fund, represents a strategic move to capitalize on the growing demand for data center capacity across the United States.

Powering the Digital Economy

BGO is currently in advanced negotiations to secure up to 800MW of power capacity to support the development of approximately 3.2 million square feet of data center space. This substantial power allocation underscores the energy-intensive nature of modern computing infrastructure and positions BGO to meet the needs of hyperscale users in an increasingly power-constrained environment.

“What we’ve been able to achieve to date through Industrial Strategies I reflects growing investor conviction in BGO’s ability to deliver the next generation of state-of-the-art digital infrastructure,” said John Carrafiell, co-CEO of BGO. “By combining institutional real estate expertise with deep utility-grade energy insight, we’re creating three shovel-ready powered sites with access to critical infrastructure.”, according to industry developments

Strategic Partnerships and Portfolio Development

The company’s collaboration with NorthPoint Development forms a crucial component of its expansion strategy. The partnership includes three sites specifically planned for data center development within a broader portfolio of eight industrial projects. NorthPoint brings significant land assets to the table, with the company reporting 37 powered land sites across 17 states totaling more than 15,600 acres and 4.8GW of potential capacity.

NorthPoint has been particularly active in Pennsylvania, where it has filed development plans for multiple projects in locations including Philadelphia, Hazle Township, and Packer Township. These developments align with the broader trend of data center expansion beyond traditional technology hubs.

Investor Confidence and Market Positioning

The successful fundraise attracted commitments from nine additional institutional investors, complementing the nine domestic institutional investors already committed to BGO’s US Industrial Strategies I fund. The combined fundraising effort reached approximately $800 million in total commitments, demonstrating strong market confidence in BGO’s approach to digital infrastructure development., as our earlier report

The investor base comprises a diverse mix of pension funds, insurance groups, and high-net-worth capital, reflecting the broadening appeal of data center infrastructure as an asset class among institutional investors seeking stable, long-term returns.

Portfolio Scale and Development Progress

BGO’s current industrial portfolio spans more than 1,500 acres across the United States with 17.1 million square feet of buildable area. The company reports that approximately 6.4 million square feet has already been constructed, with 5 million square feet leased to institutional-grade tenants. This established development track record provides a solid foundation for the company’s expanding data center initiatives.

Global Context and Future Outlook

BGO’s data center ambitions extend beyond the United States. The firm recently launched BGO DataCenters, a dedicated platform that claims a European pipeline exceeding 1.2GW of capacity focused on Tier 1 and 2 markets. This global approach positions the company to capitalize on the worldwide growth in data consumption and computing requirements.

With $86 billion in assets under management and backing from SLC Management, the institutional alternatives business of Sun Life, BGO brings substantial financial resources and real estate expertise to the competitive data center market. The successful $260 million fundraise represents just the beginning of what appears to be a comprehensive, long-term strategy to become a major player in digital infrastructure development.

As demand for data processing and storage continues to accelerate across multiple sectors including artificial intelligence, cloud computing, and enterprise digital transformation, BGO’s strategic focus on powered sites with access to critical infrastructure positions the company to meet the evolving needs of technology users requiring scale, speed, and certainty in their operations.

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