Principal Asset Management has closed its latest dedicated data center investment fund.
The company, the investment management unit of Principal Financial Group, this week announced it has reached the final investor close for its Principal Data Center Growth & Income Fund.
The new fund, dedicated to the development of a portfolio of hyperscale data center projects across the US, raised $3.64 billion. This is the third discretionary data center-focused vehicle by Principal.
The fund is expected to capitalize more than $8bn of hyperscale development assets across the US in partnership with Stream Data Centers.
"Closing this fund marks a pivotal moment for Principal Asset Management as we continue to respond to the surging demand for digital infrastructure,” said John Berg, senior managing director and global head of private real estate at Principal Asset Management.
“The success of this fundraise affirms our deep expertise in data center investments, and we are grateful for the trust and confidence of our diverse group of investors. This strategy aligns with our focus on investing in scalable sectors of the market that we expect to benefit from secular tailwinds and continues our expansion into opportunistic real estate strategies."
Principal Asset Management is the global investment solutions business for Principal Financial Group, managing $559.1bn in assets, with more than $100bn in real estate assets globally.
Principal Real Estate, the dedicated real estate investment team of Principal Asset Management, has been investing in data centers since 2007, with data center assets under management and a construction pipeline totaling $11bn.
Founded in 1999, Stream is part of Stream Realty Partners. The company’s footprint extends across Texas, Illinois, Minnesota, Colorado, Ohio, Virginia, Iowa, Oklahoma, Georgia, Alabama, Arizona, and California.
