AI infrastructure boom hands $4bn mandate to City heavyweights

Slaughter and May, Linklaters and Clifford Chance are acting on the $4 billion sale of Nordic data centre operator atNorth, as AI-fuelled demand continues to reshape Europe’s digital infrastructure market.

Canada Pension Plan Investment Board (CPP Investments) and US data centre giant Equinix are buying the business from private equity firm Partners Group in a deal that values atNorth at $4 billion.

CPP will invest roughly $1.6 billion for a 60% controlling stake, with Equinix holding the remaining 40% through a joint venture.

atNorth operates eight data centres across Denmark, Finland, Iceland, Norway and Sweden, with several additional sites under development.

City heavyweights line up

Slaughters is advising CPP and Equinix on the acquisition, and is also acting for Equinix on its JV arrangement with CPP. The cross-practice team spans M&A, real estate, competition, tax and financing and includes corporate partners James Cook and Hemita Sumanasuriya.

The mandate builds on Slaughters’ growing credentials in the sector. Last year, the firm advised Equinix on its £3.9 billion purchase of the South Mimms data centre site in Hertfordshire, one of Europe’s largest-ever data centre deals.

Linklaters is advising CPP with a team led by London partners Michael Honan and Ben Suen, alongside partners Rich Jones and John Tsui. The firm also advised CPP and Equinix on the debt financing aspects of the transaction, led by partner Ross Schloeffel.

Clifford Chance is acting for Partners Group. The firm previously advised on the sponsor’s acquisition of atNorth in 2021, with London private equity head Spencer Baylin leading that deal, and returning to steer the sale, supported by PE partner Angharad Lewis and competition partner Jennifer Storey.

AI demand drives mandates

The transaction is the latest example of how the AI boom is funnelling capital into digital infrastructure, and generating a pipeline of big-ticket mandates for law firms.

Some firms are already reorganising around the opportunity. In November, Milbank launched a dedicated digital infrastructure practice, pulling together lawyers across practice areas, including energy, projects, real estate and M&A.

The influx of institutional capital into data centres is also fuelling demand for corporate real estate lawyers capable of straddling private capital and real assets.