VANTAGE Data Centers is considering offloading its assets in Hong Kong in a sale that could fetch as much as US$500 million, according to sources familiar with the matter, as it looks to expand in other markets.
The Denver, Colorado-headquartered company is working with a financial adviser and has reached out to prospective investors to gauge interest, the sources said, asking not to be identified as the process is private. A deal could value the Hong Kong data centres at US$300 million to US$500 million, they said.
Vantage has facilities in three parts of Hong Kong – Fo Tan, Kwai Chung and On Lok – and an office in Kowloon that it opened in 2022. Backed by Boca Raton, Florida-based alternative asset manager DigitalBridge Group, the company operates data centres, or campuses, for so-called hyperscalers, cloud providers, artificial intelligence and other technology firms, according to its website. Its Asia-Pacific headquarters are in Singapore, and it has 34 campuses globally.
Deliberations are ongoing and Vantage could decide to keep the assets, the sources said. A representative for Vantage declined to comment.
The Hong Kong data centre assets were acquired from local telecommunications provider PCCW as part of a deal valued at US$750 million in July 2021.
In January this year, Vantage announced a US$6.4 billion equity investment led by DigitalBridge and Silver Lake Management, on top of 1.5 billion euros (S$2.2 billion) from AustralianSuper for its Europe, Middle East and Africa operations.
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The company secured a US$64 million loan from CTBC Bank and Cathay United Bank in March to help it develop its first data centre in Taipei, Taiwan, while it also plans to open a second Zurich campus. On Tuesday (Apr 23), Vantage said it secured a US$3 billion green loan for its North America business from a syndicate that includes Wells Fargo Securities. BLOOMBERG
