Principal Eyes $3 Billion for Two Data Center Funds on AI Boom

Principal Financial Group Inc. is seeking to raise $3 billion for two funds this year to capitalize on demand for investment in data centers in the US and Europe, according to people familiar with the matter.

The company’s asset management unit will oversee the two private real estate equity funds, the people said, asking not to be identified discussing private information. It aims to raise about $2 billion for the fund with a US focus, while targeting around $1 billion for Europe, they added. Both funds are targeting an annual net internal rate of return of 18-20% over eight years, with extension terms, one of the people said.