Kao Data owns a six hectare data centre campus in Harlow, north of London.
The company has built one data centre on that campus, with construction of a second to begin this financial year.
Once fully developed, the campus will be home to four energy efficient data centres, all powered by 100 per cent renewable energy, Infratil said.
The Harlow campus is located in the UK Innovation Corridor between London and Cambridge.
Kao's first data centre houses Nvidia's Cambridge-1, the most powerful supercomputer in the UK, which provides computing capacity to healthcare companies such as AstraZeneca and GSK.
Kao Data has also recently signed an agreement to acquire two UK prime location data centres with a long-term anchor lease from a large financial services business.
"With global demand for connectivity continuing to rise, this is an excellent opportunity to expand our digital infrastructure portfolio and build on our successful data centre platform investment in Australia and New Zealand," Infratil chief executive Jason Boyes said.
Infratil acquired Australia's CDC Data Centres in 2016, which Boyes said had delivered an "exceptional" performance.
Kao Data was a compelling strategic growth opportunity for Infratil, he said.
"It is a rare opportunity to invest in one of the fastest growing data centre markets in the world, alongside blue chip partners," Boyes said.
Infratil shares last traded at $8.24, having gained 62 per cent over the last 12 months.
