Simpson Thacher, Freshfields lead on CBRE’s £760m AI infrastructure play

Simpson Thacher and Freshfields are advising on a deal worth up to £760 million ($1 billion) as commercial real estate giant CBRE expands its presence in the fast-growing data centre market.

CBRE has agreed to acquire London-based Onnec Group for an initial £460 million, with a further £300 million earnout if the business meets certain growth targets.

Simpson Thacher is advising CBRE, while Freshfields is acting for Onnec. The deal remains subject to regulatory approvals and is expected to complete around the end of 2026.

Beyond real estate

Alongside its expansion into data centres, CBRE remains a major player in London's commercial property market. It has advised law firms including Akin and Mishcon de Reya on major office moves, while rival JLL advised Pallas Partners on its London relocation and the landlords on HSF Kramer’s new Broadgate headquarters in the City.

Onnec designs, installs and maintains the network and fibre infrastructure used inside data centres, employing around 800 people and serving major technology companies across the UK, continental Europe and Asia-Pacific.

The acquisition takes CBRE further into the technology infrastructure that powers artificial intelligence, moving beyond its traditional business of managing, developing and advising on commercial property.

CBRE previously acquired US data centre infrastructure company Direct Line Global in 2024, which primarily designs, installs and maintains data centres in the US.

Vikram Kohli, CBRE’s COO, said: “CBRE is pursuing an explicit strategy to build a global infrastructure services business to complement our real estate services business.”

The opportunity

CBRE is among several major property advisers seeking to capitalise on the data centre boom. Rivals JLL, Savills, Knight Frank and Cushman & Wakefield are also active in the sector, advising investors, developers and operators as demand for digital infrastructure accelerates.

CBRE is forecasting nearly $7 billion in infrastructure services revenue across its businesses in 2027, including the contribution from Onnec.

Advising

Simpson Thacher is acting for CBRE, led by M&A partner Clare Gaskell (London) and antitrust partner Étienne Renaudeau (London / Brussels).

Freshfields is advising Onnec, led by partner Meredith Bayley, supported by global co-head of infrastructure Jessamy Gallagher, with antitrust partner Tom McGrath (Brussels).