Vantage Data Centers explores IPO at $100 billion valuation or sale, sources say
Vantage, backed by private equity firm Silver Lake and infrastructure investor DigitalBridge Group, could raise around $10 billion and pursue a stock market listing at a valuation of about $100 billion, which would make it the largest data center IPO to date, two of the people said. The company may also consider a sale, including a stake sale, one of the people and a third person said.
Vantage Data Centers, a leading hyperscale developer and operator, is currently exploring potential exit strategies, including an IPO or sale, according to sources close to the situation. This comes as AI-driven demand continues to surge, driving up data center valuations and spurring dealmaking activity. The company, backed by private equity firm Silver Lake and infrastructure investor DigitalBridge Group, could raise approximately $10 billion and list on the stock market at a valuation of around $100 billion, making it the largest data center IPO to date, according to two of the sources.
Alternatively, Vantage may also consider a sale, which could include a stake sale, as one of the sources and a third person suggested. Preliminary discussions have been taking place over the past few weeks, with the company consulting financial advisers, but no formal process has been initiated yet. The timing, structure, and size of any potential transaction are all yet to be determined and may change, the sources cautioned, emphasizing that the discussions are still at an early stage and that Vantage could ultimately decide against pursuing any transaction.
Silver Lake declined to comment, while DigitalBridge and Vantage did not immediately respond to requests for information. The current discussions are centered around the rapidly growing data center market, fueled by the expanding need for computing capacity to support artificial intelligence applications. Vantage has raised roughly $11 billion since late 2023, with a notable $9.2 billion equity investment led by DigitalBridge and Silver Lake.
The company has also collaborated with Oracle and OpenAI on a data center campus in Wisconsin, part of a joint venture aimed at building AI infrastructure valued at up to $500 billion and generating 10 gigawatts of power. Additionally, the data center sector is experiencing a resurgence in public listings, with data center operator Switch reportedly in talks for an IPO that could raise up to $10 billion and value the company at approximately $80 billion. Meanwhile, CyrusOne is also preparing for a potential IPO as early as 2027.
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