Pacific Equity Partners is in advanced talks to acquire a majority stake in Spark NZ’s data center platform, valued at over NZ$600 million (US$550 million).

Spark NZ operates 11 data centers around Auckland with a total capacity of 22 megawatts and plans to expand further.

If completed, PEP would hold its stake through its Secure Assets Fund.

The deal follows binding bids from Northleaf Capital Partners and Igneo Infrastructure Partners, with QIC exiting after a non-binding offer.

Spark NZ is expected to use proceeds from the sale to reduce debt.

The company’s shares have fallen nearly 40% in 2025.

This would be the fifth major data centre transaction in Australia and New Zealand in the past year as demand for data infrastructure grows with AI adoption.

Spark NZ will announce its full-year results on August 20.

🔗 Source: Australian Financial Review

🧠 Food for thought

1️⃣ AI demand surge creates supply scarcity driving up data center valuations

The fierce bidding for Spark NZ’s data centers reflects a global supply crunch driven by artificial intelligence workloads.

Goldman Sachs projects data center occupancy rates will climb from 85% in 2023 to over 95% by late 2026, creating intense competition for available capacity1.

This scarcity is fueled by AI’s explosive growth, currently representing 14% of global data center power demand but expected to reach 27% by 20271.

The $550 million valuation for Spark’s relatively modest 22MW platform demonstrates how premium pricing has become the norm in markets with limited supply.

Major technology companies are expected to invest $364 billion in data centers during 2025 alone, with AI-related capital expenditures now approaching 2% of total U.S. GDP2.