Deutsche Bank's asset manager DWS is preparing a sale of its data centre business NorthC, a deal that could form part of a wave of digital infrastructure deals expected in Europe this year.

The sale process, which DWS hopes will value the company at more than €2bn, will be launched in the coming weeks, according to two people familiar with the matter.

The move to market the business comes just weeks after NorthC acquired six data centres in Germany and the Netherlands from Colt Technology Services. Another DWS majority-owned provider also acquired two London data centres from Colt.

Torch and Evercore are advising DWS, which is 80 per cent owned by Deutsche Bank, according to the people.

DWS declined to comment. Torch and Evercore did not respond immediately to a request for comment.

The data centre market is booming, fuelled by the breakneck growth of artificial intelligence and surging demand for digital infrastructure. Investors -- from private equity groups to pension funds -- are pouring billions into the sector, lured by long-term contracted revenues and the promise of stable, utility-like returns.

At the same time, cloud providers and corporates are racing to secure capacity, contributing to a wave of dealmaking and consolidation across Europe.

In April, infrastructure funds from Apollo bought seven data centres in Scandinavia, Italy and Switzerland from Stack, which is owned by investment firm Blue Owl Digital. Stack wants to focus on the hyperscale sector, which includes cloud providers such as Google, Amazon and Microsoft and gets the bulk of new large-scale investment.

Last month, UK-based IT service provider Redcentric said it was in "advanced discussions" regarding the sale of its eight data centres.

NorthC, majority-owned by DWS infrastructure funds, was formed in 2020 through the merger of two Dutch operators, the Datacenter Group and NLDC, acquired by the German asset manager the previous year.

The company runs more than 20 facilities across the Netherlands, Germany and Switzerland, focusing on regional, carrier-neutral sites. Its clients span IT providers, government bodies and healthcare organisations, which can rent space to host their own servers.

DWS, Germany's largest asset manager with about €1tn under management, has struggled to draw fresh money into its alternatives arm in recent years. Chief executive Stefan Hoops has responded by doubling down on infrastructure, encouraged by Berlin's plans to channel billions of euros into the sector.

DWS infrastructure funds also own Mediterra, which operates a data centre in Rome and is aiming to expand in Southern Europe.

Deutsche Bank's asset manager kicks off sale of data centre business