Singaporean investment firm CapitaLand has completed the acquisition of a Digital Realty data centre located in Watford, just north of London, UK. The purchase, made through CapitaLand Ascendas REIT Management Limited, was finalized for £125.1 million ($159 million).

The acquired property is believed to be the Chess Building, a 31MW data centre encompassing 25,000 square meters (269,100 square feet). Digital Realty operates the two-story building, which provides 8,400 square meters (90,400 square feet) of rentable space. The company has not publicly commented on the transaction.

The acquisition will be funded through a mix of debt financing and proceeds from earlier equity fundraising. This purchase increases CapitaLand Ascendas REIT’s data centre holdings in London to five, all of which have been acquired from Digital Realty in recent years. The newly acquired property is reported to be 80% occupied by tenants in various sectors, including information and communications technology, retail, energy, and financial services.

William Tay, CEO and executive director of CapitaLand Ascendas REIT Management Limited, emphasized the strategic importance of the acquisition, stating that it aligns with the growing demand for cloud and digital services. He also highlighted London’s position as one of the top three global data centre markets and Europe’s largest colocation data center market.

Built in 2008 and acquired by Digital in 2012, the Chess Building is part of CapitaLand Ascendas REIT’s expanding UK portfolio. The firm also owns several other facilities across the UK, all previously acquired from Digital Realty in 2021.

The acquisition reflects the broader trend of investment in data centres, driven by the increasing reliance on digital services and cloud computing. It also underscores the strategic value of London as a key hub in the global data centre landscape.