Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, has agreed to acquire Digital Halo Pte. Ltd. from its existing shareholders, including ARCH Capital.

Partners Group said in a statement on Tuesday that Digital Halo is a Singapore headquartered data center operator focused on Southeast and North Asia, and Partners Group plans to initially commit around $400 million alongside ARCH Capital, which will stay on as a minority shareholder.

According to the statement, Partners Group intends to work with the management team to transform Digital Halo into a next-generation data center platform with over 500 MW of data center capacity across multiple markets in Southeast and North Asia.

The firm’s value creation plan includes the construction and operation of two seed assets in Manila, Philippines and Johor Bahru, Malaysia.

Both assets are located in high growth data center markets with potential for significant expansion.

Led by a management team with a strong industry track record, the Company will provide built-to-suit and colocation services to hyperscale and enterprise customers under long-term contracts, generating a predictable revenue profile.

Digital Halo benefits from the robust demand for data center capacity in Asia, which is being driven by structural thematic tailwinds such as enterprise cloud migration, continued growth in data usage and e-commerce, and demand for AI training and inference workloads.

It is noted that data centers are a key global investment theme for Partners Group, which has invested over $4 billion in data centers globally since 2021.

The firm’s current assets include EdgeCore, a leading hyperscale data center platform in the United States, atNorth, a leading pan-Nordic data center platform, and GreenSquareDC, a data center provider in Australia.

The firm will apply its proven platform-building approach to Digital Halo.

“Data centers continue to be a thematic area of focus for us globally, and we believe that specific markets within Asia will offer significant growth opportunities in the years ahead,

“We will partner with the experienced management team at Digital Halo, which has a track record of delivering and managing data center capacity for hyperscale and enterprise clients, and leverage Partners Group’s network of global advisors to build the preferred regional data center operator in Asia,” said Luv Parikh, Managing Director, Head of Infrastructure Asia, Partners Group.

Kai Goh, Chief Executive Officer and Co-Founder, Digital Halo, said that after bringing the firm’s first site in Manila into operation, securing power and all necessary building permits in Johor, and obtaining exclusivity on a third site, they are pleased to bring Partners Group on board to drive the next phase of its growth.

“We plan to build and operate next generation, sustainable and AI-ready data center campuses that service the needs of both US and Asian hyper scalers and enterprises across Asia,

“We look forward to leveraging Partners Group’s significant experience in building next generation infrastructure to capitalize on opportunities across the region,” he added.

Jansen Ang, Member of Management, Infrastructure Asia, Partners Group, added that the firm has spent significant time researching the data center space in Asia.

“We believe the market, especially in Southeast and North Asia, continues to offer platform-building opportunities underpinned by favorable growth tailwinds,

“Digital Halo in its current form, including two seed assets, of which one is partially contracted, and a third asset in the pipeline, offers us an attractive entry point. We look forward to partnering with the management team and growing the platform,” he added.

Partners Group’s Infrastructure business has $27 billion in asset under management (AUM) globally.

The firm was advised by Latham & Watkins on the transaction.

Partners Group is one of the largest firms in the global private markets industry, with around 1,800 professionals and over $150 billion in overall assets under management globally.

Based in Switzerland and primary presence in the Americas in Colorado, the firm has investment programs and custom mandates spanning private equity, private credit, infrastructure, real estate, and royalties.

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