KKR and Oak Hill Invest $1.9 Billion in European Data Centers to Fuel AI Growth

Published: 2026/01/07 12:55:30

European Data Center Expansion Driven by AI Demand

Private equity firm KKR is making a important bet on the future of artificial intelligence in Europe,investing $1.5 billion into its European data center platform, global Technical Realty (GTR). This investment is coupled with a $400 million contribution from Oak Hill Capital, marking the firm as a new investor in GTR [1]. The move underscores the growing need for robust data infrastructure to support the rapidly expanding AI sector,particularly as Europe strives to catch up with the United States in AI development.

GTR’s Business Model and Growth Strategy

GTR operates on a build-to-suit model, acquiring land, securing power access, and constructing data centers tailored to customer specifications. Tenants are responsible for providing the internal equipment. Founded in 2020 through a partnership between KKR and data center entrepreneur Franek Sodzawiczny, GTR initially received $1 billion in funding.this latest investment brings the company’s valuation to the mid-single-digit billions [1].

The Surging Demand for Data Centers

The demand for data center capacity has surged in recent years, fueled by the computational requirements of cloud computing and, increasingly, artificial intelligence. Tech giants like Google, Amazon, Microsoft, and Meta have collectively committed to spending over $400 billion on data centers in the current year, building on the $350 billion spent last year [1]. This investment reflects the critical role data centers play in enabling AI technologies.

KKR’s Expansion Plans and geographic Focus

According to Waldemar Szlezak, KKR’s global head of digital infrastructure, the investment will be used to expand existing facilities in Southern England, Barcelona, Zurich, and Tel Aviv. GTR also plans to explore new site development and potential mergers and acquisitions [1]. Further expansion into the Nordics and Italy is also under consideration.

Oak Hill Capital’s Rationale for Investment

Oak Hill Capital’s decision to invest in GTR was driven by the company’s strategic focus on operating data centers near population centers and serving a high-quality customer base of cloud and technology companies. Adam Hahn,a partner at oak Hill,highlighted this as a key factor in their investment decision [1].

KKR’s Broader Data Center Portfolio

KKR has established itself as a major player in the data center market. In 2021, KKR, along with Global Infrastructure Partners, acquired CyrusOne for $15 billion, marking the largest take-private transaction in the sector to date. More recently, in July, KKR partnered with Energy Capital Partners to develop a large-scale data center in the Dallas, Texas area, representing a potential $50 billion investment [1].

Industry Consolidation and Market Trends

The data center market is experiencing significant consolidation, with 287 data center-oriented M&A deals valued at over $77 billion occurring in 2024. This trend continued into 2025,with $81 billion in deals agreed upon or completed by October [1]. Other notable transactions include Antin Infrastructure Partners’ acquisition of NorthC and Brookfield Asset Management’s new strategy focused on data center and chip storage development [1].

Key Takeaways

• KKR and Oak Hill Capital are investing heavily in European data center infrastructure to meet the growing demand from AI.
• GTR’s build-to-suit model and strategic locations are attracting significant investment.
• The data center market is undergoing rapid consolidation, with major players expanding their portfolios.
• Europe is actively working to close the gap with the US in AI infrastructure development.