TPG (TPG.US) plans to spend up to $3 billion to acquire data center operator Netrality, deal may be finalized as early as this fall

According to The Zhihui Finance APP, sources have revealed that private equity firm TPG Inc. (TPG.US) is in exclusive acquisition talks with Netrality, a data center operator backed by Macquarie Group Ltd. Reportedly, the potential deal may value Netrality between $2 billion and $3 billion. One of the sources stated that the transaction could be finalized as early as this fall. However, negotiations are ongoing, and it remains uncertain whether the deal will ultimately proceed.

Headquartered in Kansas City, Missouri, Netrality operates 18 properties across North America with a total installed capacity exceeding 100 megawatts, according to its official website. In 2019, Macquarie Asset Management acquired a majority stake in the company from Abrams Capital Management.

Representatives for TPG and Macquarie both declined to comment, and Netrality’s spokesperson did not immediately respond to requests for comment.

The explosive growth of artificial intelligence applications is exacerbating capacity bottlenecks in data centers, and power supply is becoming an increasingly challenging issue for building new data centers.

In November last year, TPG announced a $1 billion strategic partnership with India’s Tata Consultancy Services Ltd. to support the development of its AI data center business.