Case study Nexspace

European data centres at the ‘edge’

Founded in 2023, nexspace develops, constructs and operates data centres in regional metropolitan areas across the German, Austrian and Swiss (DACH) region. Its focus is on serving the demand for computing and storage capacity close to end-users of data, at the ‘edge’ of digital networks.

Investment

Nexspace was established to provide businesses in regional cities across the DACH region with secure and reliable data storage and computing solutions from dedicated data-centre facilities. Its services are particularly focused towards organisations looking to outsource their IT functions, as well as those requiring fast data retrieval speeds. Being at the ‘edge’ of established digital networks helps reduce latency for users, among other benefits.

Today, nexspace operates two purpose-built data centres equipped with c. 3 MW of IT capacity in Heidelberg, Germany, and Graz, Austria. Customers have access to powerful and flexible colocation solutions for outsourcing their IT infrastructure, along with modern facilities and systems. For example, nexspace employs a redundancy system to maintain continuous operations even if one component fails.

A sustainable approach is at the heart of the nexspace design, ensuring that customers comply with energy efficiency regulations. Its facility in Heidelberg is powered entirely by on-site solar power generation, renewable energy sources, and district cooling systems. The facilities and processes are also designed to use energy efficiently.

Moreover, the introduction of supportive regulations, such as Germany’s Energy Efficiency Act (EnEfG), which requires improvements in energy reuse strategies, strict power usage effectiveness targets, and a shift to renewable energy sources by 2027, further supports nexspace’s approach.

 

overview
  • Initial investment

    2023

  • Theme

    Communications & Digital Infrastructure

  • Strategy

    Value-add

  • Country

    DACH region

Nexspace Key statistics

  • 2

    operating data centres

  • c. 3

    MW of IT capacity

Impact

InfraRed was early to recognise the substantial opportunity presented by the need for data centre capacity at the network’s ‘edge’, helping reduce latency and improving performance by minimizing the distance that data must travel.

InfraRed played an integral role in the establishment of nexspace, alongside local developers, and has worked closely with nexspace’s management team to establish its current footprint. The InfraRed team is heavily involved in its roadmap for future growth, targeting expansion at existing sites and into other regional cities where there is an underlying need for its services.

“The regional small- and mid-size corporate market and edge opportunity represent a fast-growing segment of the data centre sector, requiring significant scale-up capital. The DACH region is ideally suited to this strategy, thanks to its large but regionalised economy and substantial base of enterprise customers. The nexspace platform provides a strong base for creating new, energy-efficient data centres to provide services to clients across the DACH region.”

Pilar Banegas Partner, Fund Management, Value-add

Further reading