Frankfurt-based energy provider Mainova is on the verge of selling its data centers. Final bids for a majority stake in its subsidiary, Mainova Webhouse, are expected next week. The US asset manager Blackrock is considered the most promising bidder among only two remaining contenders. The other potential buyer still in contention, as confirmed by financial sources, is Basalt Infrastructure Partners, which has previously focused on fiber optic companies. The majority of the shares, 50.1%, in the data center subsidiary Mainova Webhouse have been up for sale since a public bidding process began in the summer of 2023. Initially, around 70 parties had expressed interest. However, the pool of bidders has significantly reduced over time, partly due to the complex requirements of subsidy regulations, leading many interested parties to withdraw.

The investment bank Rothschild, in collaboration with the corporate finance boutique Rautenberg & Co, is overseeing the transaction. The deal is expected to be finalized in the first quarter. Mainova stated that the search for investors is ongoing. For confidentiality reasons, the company is currently refraining from providing further details on the bidding process. Rothschild has also declined to comment.

Although Mainova Webhouse has only slightly more than a dozen employees, the company is driving forward construction projects for data centers with an investment volume of 2 billion euros over the next ten years. Out of the planned 200 megawatts, the first 30 megawatts are set to be completed in Seckbach in April, followed by the next 20 megawatts in Langen.

At least four more data centers are expected to be added in Frankfurt or nearby areas. Given the significant pipeline of projects, the company is estimated to be valued in the sale at several hundred million euros. A minimum of 250 million euros in equity value for a 50.1% stake is being discussed. Who wins the bid also depends on who provides the company with the debt capital required at the same time.

Blackstone, another financial investor, was briefly interested but has since withdrawn. "We are no longer involved in the process", a spokesperson for Blackstone stated in response to inquiries. The same applies to Swiss Life, which, as an infrastructure investor, is also involved in the transmission system operator Amprion and manages infrastructure assets worth 9 billion euros.

Blackstone's real estate division has 8 billion dollars available for investments in data centers. The investments are aimed at addressing the increasing data demand resulting from the rise in AI investments. This is considered a priority for the financial investor with assets under management of over 1 trillion dollars.

Major technology companies such as Microsoft, Google, Meta, and Amazon are expected to invest around 1 trillion dollars in the coming years to build the digital infrastructure necessary to handle the growing demand for data processing through AI technologies, according to the independent research firm Dell'Oro Group.

The demand for computing capacity is being driven by the AI boom. Now, with Blackrock, a US asset manager is making a move in Frankfurt – one of the world's largest internet exchange points. Mainova is considered an attractive partner for an infrastructure investor because the energy provider can meet the data centers' enormous power needs while also serving as a customer for district heating and providing assistance with the planned construction projects due to its knowledge of the city.

The main reason why so many servers are located in Frankfurt is the presence of the world's largest internet exchange point, DE-CIX, in the banking city. About 1,000 networks from Europe are interconnected at the data hub. Another reason is the high local demand: The financial industry in Frankfurt, with Deutsche Börse and the ECB, requires data centers to transfer their data quickly. Furthermore, the General Data Protection Regulation requires that data be increasingly stored in Germany rather than in countries with different legal frameworks.

This presents opportunities for investors. The German infrastructure investor Palladio Partners sees a massive gap between demand and supply for computing capacity. Germany urgently needs to catch up to ensure that digital developments such as cloud computing or artificial intelligence do not stagnate, writes the infrastructure investor in its annual outlook. Private capital is a crucial component of financing. "We need to talk much more about sensible cooperation models between public and private financing," says Palladio Partners.