UBS Asset Management to finance unique data center facility in re-purposed Norwegian mine

UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) today announces its infrastructure debt platform (IDP) has agreed to finance a unique data center facility, located in the re-purposed Lefdal olivine mine in Western Norway. The transaction will support the continued development of the data center facility within the mine.

LMD benefits from a number of particularly attractive features: (i) being powered by stable, green and low-cost hydroelectric energy; (ii) using cold water from a fjord for cooling which guarantees one of the highest efficiency ratings; and (iii) low construction costs and time to the market. It offers 120,000 sqm² of space across three levels at a 30-50% lower construction cost-per-MW than the industry standard, as well as providing leading natural security due to the mine’s infrastructure. Norway’s access to renewable power, low energy cost, favorable climate and developed infrastructure, as well as positive government policy, mean the country is regarded as one as one of the most attractive European locations for the development of data centers.

The five-year financing arrangement, totaling EUR 50m, will support the expansion of the data center beyond the existing 20MW capacity. IDP is the sole lender to the transaction.

LMD is owned by the Columbia Threadneedle European Sustainable Infrastructure Fund (ESIF), a mid-market infrastructure fund, and German Edge Cloud GmbH & CO KG, part of Friedhelm Loh Group, a German industrial conglomerate.

The transaction is the sixth investment of IDP in the digital infrastructure sector, and the first one in Norway. Since its launch in 2015, IDP has financed 29 infrastructure projects across 13 jurisdictions in Europe.

Alessandro Merlo, Head of Investment, Infrastructure Debt at UBS-AM REPM, commented:
“Data centers are an attractive investment opportunity, which have further proved their importance and vital role for businesses during the pandemic crisis. We’re pleased to be working with LMD to finance the unique development of this data center location. This transaction is the first investment for IDP in Norway and the third in the wider Nordic region – an important market for the platform. We are pleased to also support one of the greenest data centers in Europe with very limited environmental footprint and CO₂ emissions, in line with our commitment to responsible investing in real assets.”

Jørn Skaane, CEO Lefdal Mine Datacenter, commented:
“Demand for data centre services is only growing, and clients are increasingly attracted to LMD’s unique green credentials. We welcome the completion of this facility with IDP which strengthens our ability to respond to client demand and invest in growth opportunities. We look forward to working with IDP over the coming years.”

UBS Asset Management is a large-scale asset manager with a presence in 23 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second-largest fund of hedge funds manager and one of the largest real estate investment managers in the world.

LMD is located in Norway and is owned by the Columbia Threadneedle European Sustainable Infrastructure Fund (ESIF), a mid-market infrastructure fund, and German Edge Cloud GmbH & CO KG, part of Friedhelm Loh Group, a German industrial conglomerate. The data center has a potential of 120,000 sqm² of net whitespace and 200+ MW DC capacity. With 10 MW capacity already installed, LMD is one of the leading data centers in the Nordics. The mountain hall facility sets a new standard for the data center industry. LMD is unprecedented in terms of cost effectiveness, security, and flexibility. The large space, combined with modular design enables a unique time to market, and the combination of cheap and renewable power leads to predictable, low cost for customers.

www.lefdalmine.com (360 tour)

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