Global Switch, a prominent global data center firm, is actively pursuing an external investment partner to fuel its expansion in the UK. This move comes after the company successfully completed the sale of its Sydney data center operations to HMC Capital. With an eye on growth and capital recycling, Global Switch is targeting co-investment opportunities for its high-value London campus, a key component of its strategy to drive further development and innovation in the data center market.
Investment Strategy for London’s Super-Prime Data Centers
As part of its broader financing strategy, Global Switch has appointed UBS as a financial adviser to assist in identifying potential co-investment partners for its London-based data centers. This development follows earlier reports suggesting that the company was looking to raise significant capital for its London campus.
The data center firm is believed to be seeking up to £1.5 billion (approximately $1.95 billion) to expand its operations and capitalize on market conditions, which are increasingly favorable for high-performance computing (HPC) and AI-focused data center facilities.
Expanding the London Campus with New Infrastructure
Global Switch currently operates two data centers in London’s Docklands region, known as London East and London North. In a move that underscores its commitment to growth, the company revealed plans last year for a third site, London South. This new facility will boast 40MW of capacity across 27,000 square meters (290,625 square feet), bringing the total area of the company’s London campus to 115,000 square meters (1.2 million square feet).
The London South site has already secured 224MVA of power for the next five years, positioning it as a significant player in the UK’s data center ecosystem. Furthermore, the site is set to host one of the largest HPC deployments in the UK, including over 10,000 Nvidia H100 and H200 GPUs, reinforcing Global Switch’s focus on next-generation technologies.
Capitalizing on Demand for AI and HPC Data Centers
Global Switch sees the current market conditions, particularly the growing demand for AI and HPC data centers, as a unique opportunity to raise capital and invest in further growth. The company noted that these high-demand sectors present an ideal environment for capital recycling, allowing it to strengthen its balance sheet and explore new avenues for expansion.
In a statement, the company emphasized that the formal process of seeking a co-investor for its UK operations has already begun. Global Switch is expected to provide updates on the progress of the investment search in the near future.
The Strategic Growth Plans of Global Switch
Despite divesting its Australian assets, Global Switch remains focused on identifying lucrative growth opportunities. The net proceeds from the sale of its Sydney data center operations have bolstered the company’s balance sheet, providing it with substantial capital to pursue new ventures.
The company’s growth strategy remains twofold: redeveloping and densifying its existing data centers while also expanding into new sites, often adjacent to its current facilities. Global Switch is particularly keen on high-growth markets in Europe and Asia-Pacific, with selective expansion into high-growth Asian markets also part of its long-term vision.
Global Switch’s Market Position and Ownership Changes
Founded in 1998, London-based Global Switch has become a leading player in the data center industry, operating more than a dozen facilities across Europe and Asia. In 2016, Chinese steel giant Jiangsu Shagang Group took control of the company over a three-year period. The company has been contemplating a sale for several years, with the recent Australian divestment representing its first major transaction. HMC Capital acquired the Ultimo site in October 2024 for AU$2.12 billion (US$1.41 billion), and the facility has now been integrated into a newly listed data center Real Estate Investment Trust (REIT).
Future Outlook: Focus on Tier 1 Markets and Expansion
Looking forward, Global Switch continues to see attractive investment opportunities, particularly in its core Tier 1 markets of Europe and Asia-Pacific. The company remains committed to its dual-track growth strategy, balancing the densification of its existing data centers with the development of new sites to meet the increasing demand for cutting-edge data center solutions.
FAQ Section
What is Global Switch’s strategy for growth in London?
Global Switch aims to expand its London campus by adding new data center facilities, including the recently announced London South site. The company is seeking a co-investor to raise capital for these expansions, driven by growing demand for AI and HPC data centers.
How much capital is Global Switch seeking for its London campus?
The company is reportedly looking to raise up to £1.5 billion ($1.95 billion) to fund the growth of its London-based data centers, particularly through co-investment opportunities.
What is the significance of the London South data center?
London South will be a key part of Global Switch’s London campus, offering 40MW of capacity and housing one of the largest HPC deployments in the UK. The facility will have a substantial power supply secured for the next five years, making it a crucial asset in the company’s expansion.
What technology is Global Switch focusing on?
Global Switch is emphasizing AI and HPC capabilities in its data centers, with its London South site set to feature over 10,000 Nvidia H100 and H200 GPUs, positioning the company as a leader in next-generation data center technology.
Why did Global Switch sell its Australian operations?
The company divested its Australian data center business to focus on growth opportunities in Europe and Asia-Pacific. The sale provided substantial capital to strengthen Global Switch’s financial position for future investments.
