Ark Data Centres operates sites in the UK and Belgium and runs a joint venture with the UK government's Cabinet Office. The Financial Times reported the talks, which are ongoing and could still fail.
The rush of capital into data centers is producing exits for owners that bought long before the AI boom.
TPG is in talks to buy Ark Data Centres from Elliott Investment Management in a deal that would value the British operator at about $5 billion, the Financial Times reported, citing people familiar with the matter. The talks are ongoing and a deal is not guaranteed. TPG and Elliott declined to comment.
The asset
Ark operates 27 data centers across the UK and Belgium. It runs Crown Hosting Data Centres, a joint venture with the UK government's Cabinet Office that provides data-center space for public-sector bodies. Elliott holds a majority stake and Revcap a minority stake.
Elliott acquired Ark in 2012, which would make a sale the end of a roughly 14-year holding period. Elliott had been weighing a sale that could fetch more than $4 billion, Reuters reported in 2025.
Whether the roughly $5 billion figure refers to enterprise value, including debt, or to equity has not been reported.
Why now
Data-center demand has been driven by the spending plans of large technology companies. Alphabet and Microsoft reported on Wednesday quarterly capital spending of about $51 billion and $45 billion, and Alphabet expects to spend significantly more in 2027. Buyers like TPG are paying for that demand through the companies that build and operate the space.
The Crown Hosting venture adds a different feature: a government customer with long-term needs. That kind of contracted, public-sector demand can make cash flows more predictable, which tends to appeal to infrastructure and real-asset investors.
The policy angle
A sale would move a data-center operator that serves the British government from one U.S.-based owner, Elliott, to another, TPG. A change of control over a government-linked asset could still draw attention in London, though no regulatory objection has been reported.
Well-timed exit or full price?
The seller's view: Elliott is selling into peak demand for data-center capacity after a long hold, with a valuation that appears to exceed the level reported as under consideration last year.
The buyer's view: TPG would get a portfolio with a government anchor customer, and room to grow with AI-related demand.
The risk for the buyer is paying a peak price. This week's results showed even the biggest spenders' capital outlays can come in below expectations from one quarter to the next.
What to watch
A signed agreement or end to talks, whether the valuation is enterprise or equity value, the TPG fund making the investment, any UK government comment on the Crown Hosting venture, and rival bidders.