224. From Wind farms (yield) to Datacenters (growth) - Apr26

Laurent and Gerard sit down with Paul O’Donnell, Partner at SchrodersGreencoat, a fund manager that has invested more than €13 billion and controls over 400 renewable energy assets across Europe, the Americas, and Asia. Paul has spent 17 years at Greencoat and became Partner in 2022, following Schroders’ acquisition of the platform, which itself was acquired by Nuveen in 2026. Greencoat has a distinctive structure, as it manages listed vehicles—historically known as YieldCos—designed to provide stable dividends to investors through long-term infrastructure assets.  The discussion begins with a deep dive into the evolution of the renewable energy sector over the past 10–15 years. The market has shifted from portfolios primarily backed by government-supported contracts to a more dynamic growth strategy built on active portfolio management, trading, power purchase agreements (PPAs) with hyperscalers, and the hybridisation of assets. A key milestone in this evolution has been the push toward vertical integration, illustrated by partnerships such as the Greencoat collaboration with CATL.  The conversation also explores the growing convergence between energy investors and real estate or digital infrastructure investors, particularly in the financing of datacenters. Energy supply and cooling infrastructure are becoming increasingly critical components of data centre investment strategies. While off-grid solutions are sometimes feasible in the United States—typically involving off-grid power combined with on-grid gas—such options remain very limited in Europe.Datacenters geography is also evolving. First-generation facilities were typically located close to major load centres and urban demand hubs, whereas second-generation developments are moving further away from large cities to areas where land and power availability are more abundant. This shift is driving strong interest in brownfield sites, including former coal plants, steel mills, and refineries.  The transition from a pure yield model to a growth-oriented strategy has been well received by the market, particularly after several years of lacklustre share price performance. This approach mirrors the playbook seen at Quinbrook and Intersect and is increasingly viewed as the winning strategy in the current market environment.