Exclusive-Vantage Data Centers explores IPO at $100 billion valuation or sale, sources say

New York, Aug 13 - Vantage Data Centers, a leading hyperscale developer and operator, is currently evaluating potential IPO or sale opportunities, sources suggest, as demand for artificial intelligence drives data center valuations and increases dealmaking activity. Backed by private equity firm Silver Lake and infrastructure investor DigitalBridge Group, the company could raise approximately $10 billion and aim for a listing at a valuation of around $100 billion, potentially making it the largest data center IPO ever, according to two of the sources.

Alternatively, Vantage may explore a sale, including a stake sale, as per one source and a third individual. Preliminary talks on exit strategies have taken place in recent weeks, with informal meetings held with financial advisers, according to the sources. However, no formal process has been initiated, and the discussions about potential transactions remain at an early stage, with any plans, including timing, structure, and size, open to change, cautioned the sources.

They requested anonymity due to the confidential nature of the conversations. Vantage could ultimately decide against pursuing a transaction. The rationale behind these considerations comes as data center operators have attracted significant investment from investors eager to capitalize on the surging demand for computing power to support artificial intelligence.

Data centers have also become highly attractive to technology companies and other strategic buyers seeking to secure capacity for AI workloads. Vantage has raised approximately $11 billion since late 2023, including a $9.2 billion equity investment led by DigitalBridge and Silver Lake. The valuation derived from these financings has not been disclosed.

Recently, Vantage partnered with Oracle and OpenAI on a data center campus in Wisconsin, linked to Stargate, a joint venture between SoftBank, OpenAI, and Oracle, aimed at building AI data center infrastructure valued at up to $500 billion and spanning 10 gigawatts. The data center sector is also witnessing a resurgence in public listings.

Reuters reported earlier this month that data center operator Switch had engaged banks for an IPO potentially raising up to $10 billion and valuing the company at around $80 billion, while CyrusOne is preparing for a possible IPO by 2027.