May 18, 2022 - Economy

Data center operator Global Switch hits the block

Illustration of a box that is emitting binary numbers

Illustration: Sarah Grillo/Axios

Global Switch, a London-based data center operator, is expected to soon launch a formal sale process that could fetch more than $10 billion, per Bloomberg.

Why it matters: Private equity and infrastructure fund interest in data centers isn't new, but macro economic instability could turn this auction into a feeding frenzy, given the sector's (relatively) predictable cash flows.

Sellers would include Chinese steelmaker Jiangsu Shagang Group and Chinese asset manager Avic Trust.

The bottom line: This would be the second major data center deal of 2022, following last week's announcement that DigitalBridge Group is buying Las Vegas-based Switch (NYSE: SWCH) for $11 billion. Last year saw large deals for CoreSite (by American Tower), CyrusOne (KKR/GIP) and QTS (Blackstone).

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