CyrusOne (NASDAQ: CONE) today announced the purchase of land in Hanau, Germany, a town situated 11 miles (18 kilometers) east of Frankfurt, for the development of a data center, named Frankfurt V, which will have 63 megawatts of critical power capacity across 194k sqft (18.0k sqm) of technical space. Notably, upon completion of Frankfurt V, CyrusOne will roughly double its data center capacity in the Frankfurt market.

Today’s announcement closely follows CyrusOne agreeing to be acquired by KKR and Global Infrastructure Partners (GIP) for an enterprise value of $15bn.

Frankfurt V – CyrusOne Data Center

CyrusOne’s Frankfurt V data center will be located at Industrieweg 45 Hanau, Germany. The land is situated across from a former United States Army installation known as Pioneer Kaserne, which closed in 2008.

CyrusOne Frankfurt V Data Center Map

Upon completion, the campus will comprise two separate three-story buildings, each with a critical power capacity of 31.5 megawatts. These buildings will be fed by active dual redundant power supplies with incoming power of 90 MVA (megavolt amperes).

CyrusOne plans to commence the earliest phase of construction in Q2 2023. Subsequently, the first phase of 9 megawatts of capacity (or more) will be delivered in Q3 2024.

Power Usage Effectiveness (PUE)

CyrusOne’s Frankfurt V facility will be built with a “low PUE”. As a reference point, CyrusOne’s operational Frankfurt I data center quotes a PUE of 1.3 at design load.

For Frankfurt V, CyrusOne intends to achieve a low PUE through the use of free cooling chillers and a closed-loop, ring-chilled water cooling system.

Frankfurt, Germany – CyrusOne Responds to Demand

Including operating data centers and active development projects, CyrusOne’s European portfolio encompasses nearly 218 megawatts of power capacity in Frankfurt, London, Amsterdam, Paris, and Dublin.

Operational and Development Capacity

CyrusOne’s Frankfurt V data center marks the company’s fifth campus in the Frankfurt market. Beyond Frankfurt V, the company serves Frankfurt with operational and development capacity of 59.7 megawatts of IT power across 326k colocation sqft. Below are details on CyrusOne’s four additional facilities in the Frankfurt market:

Data CenterRent ($m)CSFOccupancyIT Power (MW)
Frankfurt I$26.5m53.497%9.1
Frankfurt II$46.0m90.4100%17.6
Frankfurt III$42.1m124.4100%22.0
Frankfurt IV58.011.0
Total$114.6m326.299%59.7
Note: Rent = annualized rent, CSF = colocation square feet.

CyrusOne estimates that its Frankfurt IV facility will be completed in Q4 2022, at a total development cost of $121m to $140m. Assuming a similar build cost ratio for CyrusOne’s Frankfurt V data center, implies a total development cost of $500m+.

Demand

CyrusOne’s Interim CEO, David Ferdman, stated on the company’s Q3 2021 conference call their rationale for expanding in Frankfurt being “our strongest European market to accommodate demand from our hyperscale customers as they continue to scale”.

As shown in the table above, CyrusOne’s Frankfurt I, II, and III facilities are essentially fully-occupied. Therefore, on an empirical basis, CyrusOne appears to be responding to customer demand with its Frankfurt IV and V developments.

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