Private equity firm TPG in talks for $3B Netrality buyout

• TPG is reportedly holding exclusive negotiations to acquire Macquarie-backed Netrality Data Centers.
• The prospective buyout values the North American data centre operator at between US$3 billion and US$4 billion.
• TPG aims to expand digital infrastructure to meet soaring artificial intelligence computing and power demands.

Private equity firm TPG (NASDAQ:TPG) is reportedly in exclusive talks to buy Netrality Data Centers for up to US$3 billion.

Infrastructure investor Macquarie Group (ASX:MQG) acquired a majority stake in the data centre operator back in 2019.

According to sources familiar with the matter, a final agreement between the parties could be reached by late September.

Netrality states that it currently operates 18 North American properties with over 100 megawatts of power capacity.

Following the announcement, the TPG share price was up at US$42.96.

Rapid expansion in artificial intelligence applications has created severe capacity bottlenecks and electricity supply shortages for facility operators.

To capture AI market growth, TPG previously announced a US$1 billion strategic partnership supporting Tata Consultancy Services in November.