Spark sells majority stake in data center business to Pacific Equity Partners

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.