PEP Nears Control of Spark NZ Data Centers in $1.2B APAC Deal - InforCapital

WELLINGTON (New Zealand), August 11, 2025 — Pacific Equity Partners (PEP) is reportedly in advanced negotiations to acquire a controlling interest in Spark New Zealand’s data center business, in a transaction that could value the unit at more than NZD600 million (USD357 million). According to Bloomberg, the proposed deal would involve PEP taking a 50% to 70% stake, though exact terms have not been disclosed.

The talks follow Spark’s earlier announcement in February that it had launched a strategic process to bring in a partner for its data center portfolio. The move is part of a broader strategy to optimize its balance sheet — reducing its debt-to-EBITDA ratio from 2.3x to 1.7x by year-end 2025 — while securing capital to support expansion. Spark’s facilities currently offer 22MW of capacity, with plans to grow to more than 100MW, and are strategically located in major New Zealand metropolitan hubs and edge sites.

The potential PEP deal dovetails with the ongoing $1.2 billion sale process for Spark’s data center assets, which has drawn interest from Stonepeak and QIC. For investors, the portfolio offers immediate access to AI-ready infrastructure, underpinned by long-term lease income and positioned to capture demand from hyperscale cloud providers and domestic enterprises.

PEP’s established presence in New Zealand’s property and infrastructure sectors — including management of over NZ$1.6 billion in office assets — could enable operational synergies, integration with existing holdings, and stronger tenant engagement. For Spark, the co-ownership model expected in the deal allows it to maintain operational control while sharing capital risk with a partner.

Comparable transactions highlight the momentum across APAC:

• In 2024, KKR acquired a majority stake in SingTel’s regional data center unit for more than $1.1 billion, expanding into Singapore and Indonesia.
• Macquarie Asset Management invested heavily in AirTrunk to fund hyperscale facilities in Tokyo and Osaka.
• Brookfield took control of Data4 Group in Europe, building out a network of cloud connectivity hubs.
• In Australasia, Blackstone and CPPIB completed a landmark acquisition of AirTrunk in a deal valued at AUD24 billion, including debt and committed capex.

New Zealand remains a standout APAC market, benefiting from political stability, abundant renewable energy, and proximity to major AI and cloud centers in Australia and Southeast Asia. Government-backed digitalization initiatives and rapid 5G rollout further enhance the investment case.

With inflation and interest rate volatility weighing on traditional infrastructure yields, data centers continue to deliver inflation-protected, stable revenues. Spark’s data center unit is projected to generate NZ$47 million in EBITDA this fiscal year, with development pipelines set to accelerate growth.

Whether PEP ultimately secures control, the strong competition underscores the sector’s attractiveness. The transaction will signal not only the value of New Zealand’s digital assets but also the speed at which global capital is shifting toward APAC’s high-growth digital infrastructure markets.