By Aby Jose Koilparambil

Feb 14 (Reuters) - Segro ( SEGXF ), which has historically offered data centres equipped

only with power connections, plans to develop full-fledged facilities to directly serve major

cloud providers like Amazon ( AMZN ), Microsoft ( MSFT ), and Alphabet's Google in a bid to

shore up rental income.

The largest-listed European property company is looking to capitalise the surge in demand

for data centres, a trend fuelled by the growing reliance on AI systems, which require

specialised infrastructure like high capacity power supply and advanced cooling systems.

Typically, Segro ( SEGXF ) leases out data centres to firms that add infrastructure such as chillers,

generators, and dividing walls before sub-leasing to tech companies, which then add their own

technology.

Under the new strategy, the London-based company will lease data centres fitted with

required infrastructure directly to end users.

"A 'powered shell' might cost 50 million pounds ($62.9 million) to build, whereas a 'fully

fitted' data centre could require around 500 million pounds. However, rental income could jump

from 5 million pounds to 50 million pounds," Segro CFO Soumen Das told Reuters.

Segro ( SEGXF ) currently earns about 650 million pounds in annual rent from its broader portfolio,

and Das added that a single fully fitted data centre would have a noticeable impact on overall

revenue.

The group, which mainly owns big box and urban warehouses among other assets, has 34

'powered shells', all in London and Slough, accounting for 8% of its overall portfolio.

The London- and Paris-listed firm said it is planning for its new data centres to also

incorporate 'fully fitted' facilities, but did not provide additional details or a timeline.

However the new strategy comes with a trade-off, with Das saying fully fitted spaces would

depreciate faster than the 'powered shells', potentially impacting long-term performance.

($1 = 0.7948 pounds)