Coreweave Partner EcoDataCenter Secures $500M for Sustainable AI Buildings

EcoDataCenter Secures Significant Funding for Expansion

EcoDataCenter (EDC), a Swedish firm specializing in the construction of environmentally conscious data centers utilized by leading compute providers for managing AI workloads, has successfully obtained approximately $478 million (€450 million) in new capital. This investment anticipates a further increase in demand for its services.

Investment Details and Future Plans

The equity funding, sourced from a consortium of undisclosed institutional investors, will be allocated towards the ongoing development of innovative technologies for more sustainable data centers and the construction of new facilities.

This announcement follows closely on the heels of a recent IPO filing by CoreWeave, a major client of EDC and a prominent player in the AI compute sector, in the United States.

Cumulative Funding and Ownership Structure

To date, EDC has raised a total of €910 million ($966 million) in equity funding. Areim, the parent holding company, has refrained from disclosing the company’s current valuation.

However, Areim has confirmed that a spin-off of EDC is not currently under consideration.

Robert Björk, an investment manager at Areim and a member of the EcoDataCenter board, stated, “Our focus remains on expanding EcoDataCenter and delivering sustained, long-term value, backed by the robust support of our investors.” He further added, “While we consistently assess strategic opportunities, including potential future financing avenues, an IPO is not a priority at this time.”

Addressing the Growing Demand for Sustainable Data Centers

The Importance of Eco-Friendly Infrastructure

EcoDataCenter’s core mission centers on the development of data centers – specifically, co-location facilities where clients can deploy their own servers and associated hardware – that prioritize sustainability.

This endeavor is particularly relevant given the substantial energy consumption of large data centers, as highlighted by research from the International Energy Agency.

Data Center Energy Consumption Statistics

The IEA’s findings indicate that data centers with power demands of 100 MW or greater consume an annual amount of electricity equivalent to that used by approximately 350,000 to 400,000 electric vehicles.

Collectively, data centers are estimated to account for 1% of all global electricity consumption.

Pioneering Sustainable Building Practices

In this context, EDC distinguishes itself not only by meeting the escalating demand for compute capacity but also by striving to do so in an environmentally responsible manner – a practice that is now gaining wider adoption.

“We were the first globally to initiate construction utilizing cross-laminated timber,” explained EDC’s CEO, Peter Michelson. “Microsoft is now emulating this approach.”

EDC also leverages renewable energy sources to power its facilities and continues to innovate in areas such as cooling systems and operational efficiency.

Key Clients and Strategic Partnerships

Diverse Customer Base

EcoDataCenter’s clientele includes DeepL and various “hyperscalers.” These large companies often maintain their own data centers but also utilize co-location spaces offered by third-party providers like EDC to optimize resource allocation.

While EDC serves a diverse range of industries, including automotive with BMW, it is particularly recognized for its partnership with CoreWeave.

Collaboration with CoreWeave and Nvidia

EDC is a key hosting provider for a collaborative project with CoreWeave and Nvidia to establish the first Blackwell cluster in Europe, located in Falun, Sweden. This initiative aims to enhance compute capacity within the European region.

The Value of Co-Location Data Centers

The substantial size of EDC’s recent funding round underscores the increasing value of data centers – particularly co-location centers that help customers reduce significant capital expenditures – within the current AI-driven market.

Global Investment in AI Infrastructure

This trend is evident globally, most notably with the U.S.’s announcement of the Stargate project, a $500 billion initiative supported by OpenAI, SoftBank, and others, to construct large-scale AI data centers.

(The plan was unveiled shortly after the current administration took office, serving to emphasize a commitment to technological advancement.)

Michelson noted, “A significant influx of infrastructure-focused capital is entering the data center space, as it is evolving into a tech-oriented real estate asset.”

This real estate aspect may offer insight into how the current administration, and President Trump in particular – whose professional background is in real estate – were persuaded to support the large-scale data center initiative.