German real estate firm Aroundtown is looking to get into the data center space and aims to repurpose an existing office site in Frankfurt.

As reported by Reuters, the company has been converting some of its less sought-after office rentals into serviced apartments and is now seeking to convert some properties to data center use.

Timothy Wright, Aroundtown’s head of investor relations, said the Luxembourg-based company was in the early stages of obtaining regulatory approvals for data center conversions, and it hoped to team up with more specialized companies.

“In five years time, let’s hope we have some data centers in our portfolio,” Wright said. “It’s a different asset class for us; we need to build up the IT know-how for the setup.”

The main challenges for data center conversions in Germany include municipal regulatory permit approvals and obtaining confirmation from power providers that the required energy needs can be met, he said.

Aroundtown has received one regulatory permit to convert an office space into a data center in Frankfurt, though it has not yet received the go-ahead for its electricity usage.

According to the firm’s Q1 2025 results presentation, Aroundtown is looking to develop a 20MW facility at Wilhelm-Fay-Straße 30-34; a four-story office building constructed in 2003 and known as tricubes. IBM has been a tenant at the site, which is close to Digital Realty and CyrusOne data centers.

Upon obtaining the required approvals, Aroundtown could either sell the properties for quick cash or undertake the conversions itself, Wright said.

Founded in 2004, Aroundtown is a publicly-listed real estate company focused on commercial and residential properties in central locations in European cities, primarily in Germany and the Netherlands. The majority of its assets are office, hotel, or residential developments, with around a quarter of its properties in Berlin.

Digital Realty operates a data center within a property owned by Aroundtown in Düsseldorf.