Starwood considers sale of European data center firm Echelon

Starwood Capital Group is considering selling its stake in European data center firm Echelon, which could be valued at up to €4.5 billion. Echelon has eight campuses in its pipeline across Europe, totaling 1.2GW of capacity, with 400MW operational or under development. The company has multiple sites across Ireland, as well as projects in the UK, Spain, and Italy. Starwood invested $850 million in Echelon in 2024 and is working with Deutsche Bank AG and Eastdil Secured LLC to explore options. A sale process is expected to start in the coming weeks. The potential sale of Echelon would be one of the largest data center deals in recent history, highlighting the growing demand for data center infrastructure in Europe.

Counterparts (2)

asset

Echelon Data Centres

company

Seller

Starwood Capital Group

company

Starwood Capital Group is a global private investment firm focused on real estate, energy infrastructure and oil and gas. The firm raises capital from a broad base of investors, including public and private pension funds, endowments, foundations, sovereign wealth funds, high-net-worth individuals, family offices and insurance companies.