Leading industrial real estate developer Panattoni is expanding into the fast-growing European data centre sector by establishing a dedicated team and hiring two former top executives from Colt Data Centre Services (DCS). These strategic moves signal Panattoni’s serious intent to secure a strong position in the digital infrastructure market, which continues to grow rapidly due to increasing data volumes, cloud adoption, and the rise of artificial intelligence.
Panattoni’s New Strategic Direction
Panattoni, widely recognized as the largest privately held industrial developer in Europe, began diversifying its portfolio beyond warehouses and logistics centres in 2024. One of the most prominent growth areas has been digital real estate, particularly data centres. This new direction aligns with clients’ evolving needs and supports Panattoni’s strategy for sustainable expansion amid Europe’s digital transformation.
According to company representatives, Panattoni plans to invest in data centre infrastructure across key European capitals and distribution hubs — from Frankfurt and Amsterdam to Warsaw and Barcelona. The first phase of this plan involves launching projects worth approximately €800 million across five countries.
Strengthening the Team with Colt DCS Expertise
A pivotal step in this strategy is the recruitment of former Colt DCS executives. Gareth Richardson, previously VP of operations at Colt DCS, and Chris Erton, former director of development, have joined Panattoni as senior members of the new data centre team.
Richardson will serve as Head of Digital Infrastructure Operations, while Erton will lead Strategic Development. Their expertise spans design, construction, and management of data centres across the UK, Germany, France, and other European markets. Analysts note that bringing in such seasoned professionals indicates Panattoni’s commitment to becoming a significant player in an increasingly competitive space.
Target Markets and Investment Breakdown
Panattoni has already announced the development of five data centres in key locations:
- Frankfurt, Germany — Europe’s largest data hub. A project valued at €220 million will deliver a 30,000 m² facility with DE-CIX connectivity and hyperscale client readiness.
- Amsterdam, Netherlands — A critical sustainability-focused hub. The planned €160 million facility will prioritize renewable energy integration.
- Milan, Italy — A fast-developing market where Panattoni aims to build a €130 million centre in the Assago suburb.
- Warsaw, Poland — Targeting local cloud service providers with a project budgeted at €110 million.
- Barcelona, Spain — A €180 million investment into a facility with a 16 MW power capacity.
Combined, these projects represent €800 million in capital deployment for the first phase alone — underscoring Panattoni’s ambitious expansion.
Rising Demand for Digital Infrastructure
The shift to digital services, fueled by post-pandemic acceleration in streaming, AI, and IoT adoption, necessitates robust cloud infrastructure and the physical presence of data centres. According to CBRE, the European data centre market is projected to grow from €12.5 billion in 2024 to €18.7 billion by 2028.
Leading clients for these facilities include global tech giants like Amazon Web Services, Microsoft Azure, Google Cloud, and hyperscale AI companies. Panattoni’s new facilities are being designed to meet Tier III and Tier IV reliability standards, making them attractive to these high-value tenants.
ESG and Sustainability Commitment
All upcoming Panattoni data centres will adhere to the company’s ESG strategy, with an emphasis on:
- Renewable energy sources (solar and wind power);
- Liquid and free cooling systems;
- Water-efficient technologies and reuse systems;
- BREEAM Excellent and LEED Gold certifications.
In Amsterdam, for example, the facility will feature a net-zero carbon operations model, while in Milan, geothermal cooling systems will be implemented to reduce environmental impact.
Strategic Importance for Panattoni
The new digital infrastructure division reflects a shift in Panattoni’s focus toward high-margin asset classes. As traditional logistics facilities face declining returns in some European regions, data centres offer more attractive yields — up to 10–12% annually, compared to 6–8% in standard logistics — and long-term stability via 10–15-year leases.
According to PropertyEU, Panattoni plans to grow its data centre portfolio to represent 15% of total assets by 2028, with a projected asset value of over €3 billion in this segment.
Competitive Landscape
Panattoni will face competition from established players such as:
- Vantage Data Centers (backed by DigitalBridge);
- Stack Infrastructure;
- Equinix;
- Digital Realty;
- Green Mountain (in Scandinavia).
However, Panattoni’s control over landbank sites, relationships with local authorities, and proven track record in large-scale industrial construction give it a competitive edge in terms of speed and cost-efficiency.
Conclusion
The creation of a dedicated digital infrastructure team and the recruitment of experienced Colt DCS executives confirm Panattoni’s strategic move into the data centre sector. In an era of exploding demand for AI and cloud services, this segment is poised to become a central pillar of the company’s portfolio performance over the next decade.
With over €800 million committed in the initial phase, Panattoni is not merely adapting to digital trends — it is positioning itself to shape the future of Europe’s digital infrastructure landscape.
