Global private markets firm Partners Group is set to acquire Singapore-based Digital Halo.

Digital Halo is a data center operator with facilities located across Southeast and North Asia, and is currently owned by Arch Capital, which will remain a minority shareholder in the business.

Under the terms of the agreement, Partners Group, alongside Arch Capital, will initially invest around $400 million in Digital Halo, with the aim of helping the company expand its data center platform to more than 500MW of capacity across several markets in Asia.

According to Partners Group, this will include the "construction and operation of two seed assets," which will be located in Manila, the Philippines, and Johor Bahru, Malaysia.

Luv Parikh, managing director and head of infrastructure for Asia at Partners Group, said: “Data centers continue to be a thematic area of focus for us globally, and we believe that specific markets within Asia will offer significant growth opportunities in the years ahead.

"We will partner with the experienced management team at Digital Halo, which has a track record of delivering and managing data center capacity for hyperscale and enterprise clients, and leverage Partners Group’s network of global advisors to build the preferred regional data center operator in Asia.”

Partners Group was advised by Latham & Watkins on the acquisition.

Kai Goh, CEO and co-founder of Digital Halo, added: “After bringing our first site in Manila into operation, securing power and all necessary building permits in Johor, and obtaining exclusivity on a third site, we are pleased to bring Partners Group on board to drive the next phase of our growth.

"We plan to build and operate next-generation, sustainable, and AI-ready data center campuses that service the needs of both US and Asian hyperscalers and enterprises across Asia. We look forward to leveraging Partners Group’s significant experience in building next-generation infrastructure to capitalize on opportunities across the region.”

Digital Halo was founded in early 2023 by Arch Capital with the intention of investing in, developing, and operating digital infrastructure assets including data centers, fiber, and towers, as well as renewable power.

The company's first data center is located in Manila and currently spans 7,015 sqm (75,508 sq ft). It will eventually offer capacity of up to 70MW across the entire campus of three buildings.

Partners Group's infrastructure business currently manages assets worth $27 billion..

Earlier this year, it acquired Australian data center firm GreenSquareDC, with plans to invest up to AU$1.2 billion (US$759m) in the company. The firm has invested some $4bn in data centers since 2021, and has previously acquired Nordic data center firm atNorth and US operator EdgeCore.