TPG in talks to buy Ark Data Centres for about $5 billion

TPG is negotiating to acquire UK data center operator Ark Data Centres at a valuation of about $5 billion, according to a Financial Times report citing unnamed people familiar with the matter.

Discussions are ongoing, and the report states there is no guarantee a deal will close. The companies involved declined to comment to the FT. The seller would be Elliott Investment Management, which controls Ark and bought the company in 2012, with European real estate investor Revcap holding a minority stake.

What does Ark bring to the table?

Founded in 2005, Ark operates 27 data centers in operation or under development across nine sites in the UK and Belgium, totaling more than 560MW.

Its UK footprint includes three campuses:

• Cody Park in Farnborough
• Meridian Park in north London
• Spring Park in Corsham, Wiltshire

Several projects remain under development, including Union Park and Alliance Park in west London. The Meridian Park facility draws power through a direct line from an adjacent Energy from Waste plant operated by London Energy — an arrangement DCD examined during a site visit last year.

Ark also runs Crown Hosting Data Centres, a joint venture with the UK Cabinet Office that provides hosting to UK government departments and agencies. In short, the target combines commercial capacity with a government-linked contract base.

Why is $5 billion a higher price than past estimates?

Sale speculation around Ark has surfaced repeatedly — in 2022, 2023, and 2025 — with reported valuations of £2.5 billion ($3 billion) and, on the latter two occasions, £3 billion ($4 billion). The current reported figure of about $5 billion exceeds all of them, marking a step up in what buyers will pay for UK data center capacity.

Who is the buyer?

TPG, founded in 1992, is a private equity firm managing more than $245 billion in assets. Its recent activity in telecommunications and communications infrastructure runs through its TPG Peppertree business.

The firm's digital infrastructure record includes:

• investments in multiple telecoms and fiber companies
• the large Quantum Frederick data center park in Maryland
• participation in Tata's new HyperVault data center venture this year
• reported interest, as recently rumored, in acquiring US operator Netrality Data Centers for up to $3 billion

A $5 billion Ark purchase would rank among TPG's largest digital infrastructure commitments and would move a 560MW UK-Belgium portfolio under private equity ownership. Elliott has held Ark for 13 years; whether it exits now depends on talks that may still fall apart.