Cromwell and Stratus clarify position on proposed data centres fund

Cromwell Property Group (Cromwell) and Stratus Data Centres (Stratus) would like to clarify the position with regards to the proposed Stratus Cromwell Data Centre Fund, conditional Heads of Agreement for which were announced in July 2020.

Cromwell confirms that it did examine the proposal in the last quarter of 2020 but was unable to commit to the project at that time.

Stratus, together with its various property partners, hyperscale tenants and other potential investors, have continued to progress with the initiative.

“We still believe the thematic behind the asset class will stand the test of time,” said Acting Cromwell CEO Michael Wilde.  “We have no doubt the Stratus team and their partners will be successful and we wish them well with their plans.”

The proposed Fund has been mentioned in a number of recent articles which have implied the proposal didn’t proceed due to issues with securing renewable energy for the seed assets.

Cromwell notes this point was made to highlight how complex the various moving parts to any agreement are, with securing renewable energy sources used as an illustrative example.

It was not intended to imply the proposal didn’t proceed due to any failure to secure power (or any other operational issue) with respect to Stratus data centre projects.

“We appreciate that the Cromwell team has clarified that there are no issues with respect to Stratus, renewable power, or otherwise with our hyperscale data centre projects,” said Eric Solberg, Chairman of Stratus, which continues in partnership with leading cloud operators.

“Indeed, we remain in close contact with our friends at Cromwell and remain open to partnering or otherwise pursuing projects together in the near future.”