The centre is located near London in the Foxboro Business Park and currently spans 11,800 square metres across three buildings with 26MVA of power attracting 26 existing tenants.

Castleforge and Galaxy plan to significantly expand the site to increase capacity by around 50%.

Castleforge said: “At this time, we are actively working on refining the plans for the next phase of the project to align with the needs of our existing clients, new clients, and the community. We’re looking to submit a planning application shortly, following thorough engagement with the planning authority.

“Upgrades to the existing data centre will commence imminently to provide greater power availability and power densities. Construction works for the new facility are planned to begin later this year, with initial phases expected to be ready for occupation in 2026.”

The firm said surging demand for data is significantly outstripping current levels of power supply, and with difficulties constructing new data centres around major metropolitan areas, existing hubs are becoming increasingly attractive prospects for investment.

Adam MacLeod, Partner, Castleforge, said: “Data centres have been an attractive prospect that we have been monitoring for some time, but with advancements in AI and cloud computing accelerating demand, we have been eager to find the right opportunity in which to invest. The sector also fits within our speciality of operational real estate investment, and we see this as a logical extension to our existing capabilities.”

Paul Leong, Chief Financial Officer at Galaxy Data Centers added: “Redhill presents a rare opportunity to acquire a high-performing data centre in the prime London market, with strategic potential for expansion in both power and scale.

“We see tremendous growth potential to expand the facility’s power capacity and grow Redhill’s customer relationships. We are dedicated to enhancing the service and experience for all Redhill’s customers throughout this transition and beyond.”