Principal Asset Management Acquires Switch Datacenters’ AMS2 Data Center Site in Woerden, Netherlands

Principal Asset Management has bought a data center near Amsterdam, acquiring the Switch Datacenters AMS2 facility in Woerden for its Principal European Data Centre Fund I. The firm announced the transaction this week. Switch Datacenters will continue to operate the site under its name.

The financial terms were not disclosed. The deal covers the real estate and infrastructure assets only, and Switch Datacenters keeps full operational control of AMS2.

A Long-Term Lease Underpins the Sale

As part of the transaction, Switch Datacenters has signed a new 20-year lease on the facility.

The operator has run AMS2 since 2014, when it acquired the site and converted it into a colocation data center. The property was originally developed as a banking data center and disaster recovery facility.

AMS2 is a carrier-neutral facility located approximately 40 km (25 miles) south-east of Amsterdam. It provides approximately 5,500 sqm (59,200 sq ft) of lettable space.

Upgrade Will Lift Capacity to 4.2 MW

Switch Datacenters is currently refurbishing and expanding AMS2, work that will increase the facility's capacity to approximately 4.2 MW of IT load.

When complete, the site will offer liquid direct-to-chip and hybrid air-cooling technology, with closed-loop, water-free cooling. The facility will also make its waste heat available to local heating networks.

Beyond the current works, the site has the potential to accommodate a further 14 MW of capacity over the medium term.

What the Executives Said

Paul Lewis, managing director of European data centers at Principal Asset Management, said the acquisition strengthens the firm's exposure to one of Europe's most important data center markets and reflects its conviction in the long-term growth of digital infrastructure.

"AMS2 benefits from a high-quality location, a long-term tenant relationship, and a clear value-enhancement opportunity through the planned refurbishment program," Lewis said.

Cara Mascini, chief strategy officer at Switch Datacenters, highlighted the sustainability benefits of the upgrade.

"Increasing the sustainability of existing data centers like AMS2 is important to Switch Datacenters in terms of economic lifetime, energy efficiency, and social and environmental impact," Mascini said. "This agreement gives us long-term certainty to upgrade AMS2 for high-density workloads in a more sustainable manner while we continue to operate it under our own name and with our own customers."

Seventh Asset for Principal's European Fund

AMS2 is the seventh asset acquired for Principal European Data Centre Fund I.

The fund raised USD 333.4 million from 14 investors and is now closed to new investors. It first closed in February 2022 with USD 175.8 million, beating its initial target, and reached its final close in October 2023.

The vehicle focuses on manage-to-core data center assets. Its existing holdings are in Barcelona, Spain; the UK; Amsterdam, the Netherlands; Dublin, Ireland; and Germany, in Frankfurt and Düsseldorf.

Switch Datacenters' Dutch and Polish Portfolio

Switch Datacenters, not to be confused with US operator Switch Inc., runs three data centers in the Amsterdam region, designated AMS2, AMS3, and AMS4. It has another facility, AMS5, planned in the Netherlands, and recently announced a project in Warsaw, Poland.

The operator's original AMS1 facility was acquired by Equinix in 2019. The De Groot Family Office is an investor in Switch.

Principal and Switch Have Worked Together Before

The two companies have a prior relationship.

In 2023, Principal announced plans to acquire and convert a logistics facility in Amsterdam into a 42 MW data center for Switch.

Principal Asset Management is the global investment solutions business for Principal Financial Group and has more than USD 600 billion in assets under management.