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(Sharecast News) - Tritax Big Box Reit has secured planning consent for its first data centre development, the blue chip confirmed on Monday, following the conclusion of a six-week judicial review.
The retail estate investment trust will construct the 107mw Manor Farm data centre near Heathrow, on the 74-acre Slough Availability Zone site, as it expands beyond its traditional base of logistics.
Tritax also confirmed it had secured an accelerated pathway to power delivery, which it called a "critical differentiator" in a market where access to power remains a major constraint to new data centres being built.
"This provides greater certainty over deliver timelines and enhances the opportunity to bring capacity to market ahead of competing schemes," Tritax noted.
The pre-let agreement is now with solicitors, it added.
Colin Godfrey, chief executive, said securing planning consent represented a "significant value creation milestone for shareholders, and is the first major demonstration on our data centre value strategy".
He continued: "This combination of planning success, speed to market and execution capability underpins our confidence in delivering exceptional risk-adjusted returns for shareholders, and supports our medium-term earnings growth ambition."
Once operational, the facility is expected to achieve a 9.3% yield on cost.
Power hungry-data centres are essential to cloud computing and artificial intelligence.
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