TPG (TPG.US) plans to spend up to $3 billion to acquire data center operator Netrality as early as the fall

The Zhitong Finance App learned that according to people familiar with the matter, the private equity agency TPG Inc. (TPG.US) is in exclusive acquisition negotiations with Netrality, a data center operator supported by Macquarie Group Ltd. (Macquarie Group Ltd.). According to reports, the potential deal may value Netrality between 2 billion and 3 billion US dollars. One of the people familiar with the matter said that the deal could be reached as early as the fall of this year. However, negotiations are still ongoing, and it is uncertain whether it will work out in the end.

Netrality is headquartered in Kansas City, Missouri. According to its official website, the company operates 18 properties in North America with a total installed capacity of over 100 megawatts. Macquarie Asset Management acquired a majority stake in the company from Abrams Capital Management in 2019.

Representatives from TPG and Macquarie declined to comment, and a Netrality spokesperson did not immediately respond to the request.

The explosive growth of artificial intelligence applications is exacerbating data center capacity bottlenecks, and electricity supply is becoming an increasingly difficult problem in building new data centers.

In November of last year, TPG announced a $1 billion strategic partnership with India's Tata Consultancy Services Ltd. (Tata Consultancy Services Ltd.) to support the development of its AI data center business.