Singapore’s sovereign wealth fund GIC is reportedly considering the sale of its 80 percent stake in its European data center joint venture with Equinix.
According to Bloomberg sources, the deal could value the business, which operates under the xScale brand, at around €2 billion ($2.4 billion).
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GIC’s stake could reportedly be sold for €800 million to €1 billion, with the wealth fund targeting infrastructure-focused investors. The sources said that Equinix would remain invested.
Equinix and GIC formed the JV in 2019 with an aim to develop and operate hyperscale-focused data centers in Europe.
Since then, the pair have expanded the scope of the xScale brand to Asia, Latin America, and the US.
The two companies have pledged a total of more than $22 billion to finance xScale-branded data centers. GIC and Equinix, alongside the Canada Pension Plan Investment Board, set up a new JV to raise $15 billion in 2024.
This latest JV targeted the purchase of land for several 100MW plus data center campuses in the US, with the aim to add more than 1.5GW of new capacity.
Bloomberg reports that deliberations are still at an early stage, and GIC may decide to keep its stake in the European JV for longer.
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