New Zealand telecoms firm Spark has completed the sale of its data center business to Pacific Equity Partners (PEP).

The telco’s data center assets and operations have now transferred over to a new standalone company, called TenPeaks Data Centres, led by Spark’s former data center general manager, Michael Stribling.

Spark CEO, Jolie Hodson, said: “Spark has built a strong data center business in New Zealand, operating over 23MW of capacity at 11 facilities across the country. We’re excited to complete this transaction with PEP, which provides a funding pathway for the planned 130MW+ capacity development pipeline and significant growth potential beyond.”

She continued: “We look forward to working together through our 25 percent retained stake, and as a key data centre customer, to grow the business and create further value for our shareholders, while delivering the infrastructure that will support New Zealand’s digital future.”

Spark announced it was selling a 75 percent stake in its data center division to PEP in August.

The transaction valued the business at up to NZ$705 million (US$417.6m), with Spark receiving NZ$486m (US$288m) upon completion and up to a further NZ$98m (US$58m) based on performance objectives. Spark said the funds will be used to pare down debt.

TenPeaks CEO Stribling added: “We are excited to complete the transaction and officially launch our new data centers business. With our experienced team and the support of both PEP and Spark, we are confident in our ability to rapidly scale our capacity to meet New Zealand’s growing data storage needs.”

Spark's data center unit totaled 11 facilities comprising both large, centralized data centers, such as those in Auckland (x3), Waikato, Wellington, and Christchurch (x3), alongside Edge locations in regions such as Hamilton, Tauranga, and Dunedin.

The company had plans for a greenfield development on Auckland’s North Shore and further extensions at its existing site in Takanini, South Auckland. TenPeaks this week told Reseller News that the company intends to invest NZ$3 billion (US$1.8bn) to expand the acquired portfolio.

Pacific Equity Partners is a private equity investment firm focusing on Australia and New Zealand. Founded in 1998, it has some AU$14 billion (US$9bn) in assets under management.

Spark first announced it was looking for a buyer in February 2025. Stonepeak, PEP, QIC, Mitsubishi-owned Igneo Infrastructure Partners, BGH Capital, and TPG Capital were all said to be looking at investment during the sale process.