Irish data center company, Echelon, has struck a deal with investors Pioneer Point Partners (Pioneer) and Davidson Kempner (DK) for a €1bn ($1bn) investment program.

Pioneer Point, an investment firm which specializes the energy transition and environment sectors across Europe, and DK, will cover the costs of Echelon's planned infrastructure and renewable energy projects. These projects will be used to support Echelon's 184MW IT load across its two locations in Ireland. According to Pioneer's website, the deal was agreed in March.

A recreation of one of the planned sites – Pioneer Point Partners

Meeting the data center's needs

Pioneer is a company that has more than $800m in equity committed across Europe, and has acquired green energy firms including Brockwell Energy and Nature Energy. The US hedge fund DK manages more than $30bn in assets. Pioneer has said it will also be involved in the construction of the facilities.

In a statement, Pioneer said: "The data center sector is going through significant change driven by the exponential growth in data usage and storage, leading to the need for projects on a much larger scale than previously. This, combined with the end tenant’s desire for renewable energy to meet their stated carbon-neutral goals, means the energy solutions for data centers are becoming increasingly capital intensive and require specialist investment expertise.

"This sustainable investment theme is a key focus area for Pioneer, with Ireland being a priority due to its strategic importance as one of the largest technology hubs in Europe."

DK's interests are not necessarily all so green. According to Sky News, the company is one of the prospective investors who have held talks with Virgin Atlantic bosses this week. The airline is seeking more than £500m in debt and equity funding and wants this agreed by the end of the month. Sky News says DK was on a list of investors along with Apollo Global Management, Cerberus Capital Management, and Greybull Capital, the former owner of Monarch Airlines.