Spark sells majority stake in data center business to Pacific Equity Partners
By Global Infrastructure Sherpa · Aug 12, 2025
Spark New Zealand has sold a 75 percent interest in its data center business to Pacific Equity Partners (PEP) for up to NZ$705 million (US$417.6m). The deal is expected to close by the end of December 2025, pending regulatory approvals.
Deal Analysis
Spark New Zealand's sale of a 75% stake in its data center business to Pacific Equity Partners (PEP) for up to NZ$705 million represents a significant transaction in the New Zealand data center market. The deal, expected to close by the end of December 2025, will see PEP, an Australian private equity firm focused on leveraged buyouts in Australia and New Zealand, take control of a 23 MW data center portfolio. This move allows Spark to potentially unlock capital for other strategic initiatives while PEP gains a foothold in a growing digital infrastructure asset class.
The transaction is notable for its size, the involvement of a major telecommunications player like Spark, and the entry of a prominent private equity firm like PEP into the New Zealand data center space. This investment signals confidence in the continued growth of data demand and digital transformation within New Zealand. The deal's completion is contingent upon regulatory approvals, which will be a key factor to monitor moving forward.
- Spark New Zealand sells 75% stake in its data center business.
- Pacific Equity Partners (PEP) is the buyer, a private equity firm focused on Australia and New Zealand.
- The deal is valued at up to NZ$705 million (US$417.6m).
- The data center portfolio has a capacity of 23 MW.
Market Context: The data center sector is experiencing growth globally, driven by increasing demand for cloud computing, data storage, and digital services. New Zealand, while a smaller market, is seeing increased investment in digital infrastructure to support its growing digital economy.
Source Intelligence
KEY DETAILS
Spark will receive NZ$486m (US$288m) upon completion and up to a further NZ$98m (US$58m) based on performance objectives. Quote: Spark said the funds will be used to pare down debt.
Spark will retain a 25% stake. Quote: while also continuing to participate in the growing market through our 25 percent retained stake – creating further value for our shareholders over the long term."
Spark's data center revenue increased 13.6 percent to NZ$25 million (US$14.8m) in FY 2025 first half-year results. Quote: In the FY 2025 first half-year results, Spark’s data center revenue increased 13.6 percent to NZ$25 million (US$14.8m).
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Deal Size
The transaction values the business at up to NZ$705 million (US$417.6m)
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Capacity
The DC Co has 23MW of built capacity across 11 operating data centers in New Zealand
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Location
with plans for a greenfield development on Auckland’s North Shore and further extensions at its existing site in Takanini, South Auckland.
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Announcement
August 12, 2025
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Expected Close
The deal is set to close – pending regulatory and customary consents, including Overseas Investment Office approval – by the end of December 2025.
PARTIES MENTIONED IN SOURCE
S
Spark New Zealand
seller
"Kiwi telco Spark New Zealand has sold a majority stake in its data centers to an investment firm."
P
Pacific Equity Partners
buyer
"The company this week announced it has entered into an agreement to sell a 75 percent interest in its data center business to Pacific Equity Partners (PEP)."
J
Jarden
advisor
"Jarden has been appointed as the financial advisor to Spark on the transaction."
high quality
Enriched Feb 19, 2026
Market Context
This deal is part of the Data Center sector in New Zealand.
1 of 129 Data Center deals tracked this month · Updated daily
Global Infrastructure Sherpa