Singapore-based Digital Edge weighs options including sale for up to US$10 billion: sources

[HONG KONG] Digital Edge, an Asian data centre operator backed by alternative asset manager Stonepeak Partners, is exploring options including a sale, according to sources familiar with the matter.

The Singapore-based company is working with JPMorgan Chase on a review that may lead to a partial or full sale, the sources said, asking not to be identified because the deliberations are private. A transaction might value the company at as much as US$10 billion, the sources said.

Other infrastructure-focused funds and industry players could be interested in the asset, the sources said. Digital Edge has experienced a material acceleration in leasing by US hyperscalers over the past 18 months, some of the sources said.

Deliberations are preliminary and no final decisions have been made, the sources said, adding that the company could decide against pursuing a deal.

A representative for Digital Edge said that the focus remains on operating the business, executing strategy, and continuing to deliver for customers across all markets, declining to comment any further.

Stonepeak and JPMorgan declined to comment.

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Founded in 2020, Digital Edge provides data centre and fibre services in several countries in the Asia-Pacific region, including China, India and Japan, and has 1.8 gigawatts of secured IT power. The company raised over US$1.6 billion last year in new equity and debt capital to support growth. It plans to invest US$4.5 billion to build one of Indonesia’s largest data centre campuses. BLOOMBERG