Australian data center operator NextDC is reportedly in talks to acquire some of Global Switch's data center portfolio.

First reported by the Australian Financial Review, the two companies are still in the very "early stages" of talks, but if the acquisition goes ahead, it is likely that NextDC will buy Global Switch's Australian data centers and fund it via equity-raising.

Global Switch Sydney data center – Global Switch

London-based Global Switch is reportedly being advised by Swiss bank UBS.

Global Switch's presence in Australia has long been challenging. In 2017, Chinese steel company Shagang invested in Global Switch and has since become its majority shareholder. This led to the Australian Government exiting a number of Global Switch facilities over the following years.

In 2021, the Government introduced a hosting certification framework that approved certain data center providers as safe for use with sensitive data. Among those included are Equinix, Fujitsu, NextDC, Australian Data Centres, Canberra Data Centres, and Macquarie Telecom.

This is also not the first time that NextDC was reportedly considering acquiring Global Switch data centers. In May 2022, the company was said to be looking at acquiring the Asia-Pacific arm of Global Switch, which at the time had 144MW across the region including in Hong Kong and Singapore. This sale never materialized.

AFR has additionally reported that investment firm EQT is still considering acquiring a large portion of Global Switch's remaining data center portfolio, though EQT declined to comment. The company is working with JPMorgan and Citi on the deal.

Global Switch has been exploring a sale since 2021, at the time suggesting to potential buyers a value of between $10-11 billion. This was unsuccessful, and in January 2023 discussions ground to a halt.

In August 2023, reports that the company was planning to carve out its Europe and Asia Pacific operations and sell them to separate buyers arose. This plan reportedly valued each segment at around $3bn.