French data center developer Azur Datacenter has signed a preliminary deal to acquire the headquarters of hydrogen infrastructure maker HRS in Champagnier, near Grenoble, France, and develop it into a data center.

The company, a subsidiary of the Arago Technologie group, plans to invest close to €360 million ($420m) in the 14,100 sqm (151,771 sq ft) site, creating around 100 local jobs in the process.

According to the companies, Azur will take control of the property by the end of the calendar year.

The deal includes a lease-back provision, valued between €22 million and €25 million ($26m-$29m). As per the terms of the contract, HRS will remain at the site under a long-term lease, continuing its manufacturing operations alongside Azur’s build-out.

The transaction is expected to close by the end of 2026, subject to a building permit and environmental approvals under France’s ICPE industrial-site regulations.

The deal is part of Azur’s strategy of retrofitting and rehabilitating existing buildings into data centers. The site currently houses HRS’s offices and production facility for hydrogen refueling equipment.

In addition to the real estate transaction, the companies also said that they are in advanced talks concerning a longer-term industrial partnership focused on energy-efficient data center design. HRS said it would contribute expertise in industrial piping, hydrogen-based power generation, and its Secure Power Units (SPUs), a product line that converts hydrogen to electricity for data centers and other critical infrastructure. The companies also plan to expand into metalwork and structural steel work together.

“We are very pleased to acquire the HRS campus, a key step forward in continuing our growth trajectory,” said Emmanuel Vannier, chairman of Azur Datacenter. “Our ambition is to build a long-term strategic partnership with HRS based on innovation, the complementarity of our expertise and value creation.”

HRS said that the deal is predominantly a balance-sheet move, with the cash injection expected to fund its shift beyond hydrogen refueling stations for heavy transport. The company, which was launched in 2004, currently has 31 high-capacity refueling stations and has signed 22 maintenance contracts.

At present, Azur has four data centers in France. Two of the sites are operational, with a further two planned or under development.