Exclusive-Singapore's SC Capital in talks to buy British data centre group Global Switch, sources say

By Amy-Jo Crowley and Yantoultra Ngui

LONDON/SINGAPORE (Reuters) - Singapore-headquartered real estate investment manager SC Capital Partners has emerged as a potential bidder for British data centre group Global Switch, two people familiar with the matter told Reuters.

The firm, backed by global real asset manager CapitaLand Investment, is working with advisers to buy the London-based company, which is currently controlled by Chinese steelmaker Jiangsu Shagang Group, one of the people said.

Both sources spoke on condition of anonymity because the matter is private.

Talks are ongoing and subject to market conditions, the people said, cautioning that a deal is not guaranteed.

A transaction could value Global Switch at between $4 billion and $5 billion, the first person said, adding that SC Capital is the only bidder that has emerged for the company.

A spokesperson for Global Switch declined to comment. SC Capital and Jiangsu Shagang did not respond to Reuters' requests seeking comment.

Global interest in digital infrastructure has not been dampened by the current uncertain macro environment triggered by U.S. President Donald Trump's tariffs and policies.

Against the backdrop of rising demand for artificial intelligence and cloud computing-based services, digital infrastructure assets such as data centres are increasingly gaining investors' attention.

Founded in 2004, SC Capital has over 60 institutional investors globally and around $6 billion in total investments, according to its website.

In November, it announced that CapitaLand Investment, also based in Singapore, will acquire an initial stake of 40% in the firm for S$280 million ($207.67 million), with the option to buy the remaining 60% in phases over the next five years.

Global Switch said in 2022 that its shareholders were exploring a potential sale.

It held talks with Swedish private equity group EQT in 2023, Reuters reported at the time, but a deal never materialised. Final bidders had valued it at around $8 billion including debt, Reuters reported.

Asset manager HMC Capital in 2024 went on to buy Global Switch's Australian business for A$1.94 billion. The deal came four years after the Australian government banned government agencies from using Global Switch Australia due to data security concerns.

Global Switch in October hired UBS to raise capital for its UK business, according to a company statement in December.

($1 = 1.3483 Singapore dollars)

(Reporting by Amy-Jo Crowley in London and Yantoultra Ngui in Singapore, with additional reporting by Charlie Conchie in London and Kane Wu in Hong Kong; Editing by Anousha Sakoui and Joe Bavier)