European data center firm Magnora has acquired a stake in a data center joint venture in Estonia.

Magnora Data Center this week announced that it has entered into an agreement with Sunly AS, an integrated energy infrastructure company, to acquire a 50 percent interest in the Risti Kampus data center project. Terms of the deal were not shared.

The site is located in western Estonia, 60km (37 miles) south of Tallinn and 150km (93.2 miles) south of Helsinki. Magnora said the first phase of the data center development could total 180MW in phase, eventually reaching 400MW.

The Euronext Growth Oslo-listed company said the Risti campus can be connected to the power grid and to Sunly’s adjacent energy park, featuring 244MWp solar, 144MW BESS, and 44MW wind in development.

Magora said it has an option to extend its stake in the joint venture to 75 percent.

“We look forward to develop this powered land and data center project together with local and regional stakeholders and with our local partner Sunly – which has a strong track record and is backed by leading European infrastructure investors. The site has good access to renewable energy, strong connectivity, and scalability. We expect time-efficient project development. This combination matches well the demand from large-scale operators,” says Erik Sneve, chairman at Magnora Data Center ASA.

Founded in 2019, Suny has 1GW of renewable-energy capacity operating or under construction. Its investors include Mirova, the European Bank for Reconstruction and Development (EBRD), Copenhagen Infrastructure Partners (CIP), KLP, Vardar, EIB, mBank, and Rivage Investments.

News that Sunly was planning a campus in Estonia surfaced in March. On its website, Sunly lists the Risti Energy Park as in Lääne-Nigula Parish on the northwest coast of Estonia.

“Risti hybrid park brings Sunly’s strategy together in one place. The data center site sits next to what will soon be the largest solar park in the Baltics, where we are also building battery storage capacity and planning a wind park. A large consumer like a data center ties all of this into a single system”, explains Priit Lepasepp, CEO of Sunly.

Magnora was initially founded in 2001 and transitioned into a dedicated renewable energy investor in 2018, since investing in a number of wind, solar, and battery projects. The company took its data center arm public earlier this year.

The company has a facility live in Norway, and has several more in development across Norway, Finland, and Italy.