Partners Group intends to invest $400 M in pan-Asian expansion by acquiring data center platform Digital Halo
Acting on behalf of its clients, Partners Group, one of the biggest companies in the global private markets sector, has consented to buy Digital Halo Pte. Ltd. from its current shareholders, including ARCH Capital.
Digital Halo is a data center operator with its headquarters in Singapore that focuses on Southeast and North Asia, according to a statement released by Partners Group on Tuesday. Partners Group intends to initially invest about $400 million alongside ARCH Capital, which will remain a minority shareholder.
In order to turn Digital Halo into a next-generation data center platform with more than 500 MW of data center capacity across several markets in Southeast and North Asia, Partners Group plans to collaborate with the management team, the statement said.
The establishment and management of two seed assets in Manila, Philippines, and Johor Bahru, Malaysia, are part of the company’s value creation strategy.
Both assets are situated in data center markets that are experiencing rapid growth and have room to grow significantly.
Under the direction of a management team with a solid track record in the industry, the company will offer colocation and built-to-suit services to enterprise and hyperscale clients under long-term agreements, producing a steady revenue profile.
The strong demand for data center capacity in Asia, which is being fueled by structural thematic tailwinds like enterprise cloud migration, ongoing increases in data usage and e-commerce, and the need for workloads related to AI training and inference, is advantageous to Digital Halo.
Given that Partners Group has made over $4 billion in data center investments worldwide since 2021, it is evident that data centers represent a major global investment theme.
AtNorth is a leading pan-Nordic data center platform, EdgeCore is a leading hyperscale data center platform in the United States, and GreenSquareDC is a data center provider in Australia.
The company will use its tried-and-true platform-building strategy for Digital Halo.
“Data centers continue to be a thematic area of focus for us globally, and we believe that specific markets within Asia will offer significant growth opportunities in the years ahead,
“We will partner with the experienced management team at Digital Halo, which has a track record of delivering and managing data center capacity for hyperscale and enterprise clients, and leverage Partners Group’s network of global advisors to build the preferred regional data center operator in Asia,” said Luv Parikh, Managing Director, Head of Infrastructure Asia, Partners Group.
