Merlin to Raise €1.5 Billion in Capital Expansions Over Three Years
Merlin plans to raise €1.5 billion through two capital expansions to finance data center developments. This investment is part of a larger €4.47 billion initiative aimed at enhancing its position in the data center market in Southern Europe.
Theia Market Signal Identification - AI Assisted
Merlin will execute two capital expansions totaling €1.5 billion, with each expansion planned at €750 million, to support its data center phase 3. The first expansion is slated for late 2027 or early 2028, with the second expected in 2029.
This funding is crucial to ensure operational infrastructure for the data centers by 2030-2032, aligning with the expiration of electric licenses. The company aims to maintain a strong financial position to focus on construction without financial concerns until 2030.
Merlin anticipates tripling its revenue and cash flow by 2032, with current data center investments expected to double asset values upon operation. Over the past year, Merlin's stock has risen by 50.5%, outperforming the European real estate sector, which saw a decline of 1.7%.
Comments