It has been reported [The Australian Business Review, April 11, 2024] that a number of Australia’s larger data center operators will be missing from the process of selling Global Switch’s Australian assets.
In another twist to a tale that is now entering its fifth year, it is stated that two of the largest data center operators in Australia – AirTrunk and Next DC- have not been invited to bid for the Australian business and its assets.
As the two of largest operators in the market and also since both are companies that are Australian in origin their omission raises some questions as to the intended outcomes. Their absence leaves the field open to institutions such as Brookfield, Blackstone and a number of other super funds as the most likely buyers given that they have the funds and, on the basis of recent deals, an appetite for data centers and digital infrastructure with Australia over the past few years a target market. No clear reason for the competitor exclusion is given.
The key assets are the two Global Switch data centres located on the western fringe of Sydney’s CBD which together offer 73,000 m2 of space and 80 MVA capacity. These assets are described by the company as ‘Australia’s only hyperscale campus’ and are reported to require some investment for upgrade.
The business has been put up for sale with UBS who worked with Morgan Stanley in 2021 on the sale of Global Switch assets.