Telco said to be offering up to 50 percent of business.
New Zealand telco Spark is looking to sell a stake in its data center portfolio.
The AFR this week reported the Kiwi firm is launching an auction to find a co-investor for its data center portfolio.The publication said the portfolio could be valued at up to $NZ1.2 billion (US$710 million). Jarden has reportedly been tapped to find a buyer, and is pitching to infrastructure funds for stakes up to 50 percent.
In reply, Spark confirmed the news, pointing to its 2025 H1 trading update from February in which the firm announced that it “commenced a process to explore interest from prospective partners to support future data center investment.”
“No transaction has been agreed, and a transaction (including any potential transaction value) is not yet certain,” the company said this week. “Spark will keep the market updated in accordance with its continuous disclosure obligations.”
In the February announcement, Spark said a process was underway to secure a capital partner to co-invest in its data center growth strategy. Further details were not shared.
Spark chair, Justine Smyth, said at the time: “We have… commenced a process to invite expressions of interest from prospective capital partners to co-invest and accelerate our data center growth strategy.”
She added: “The scale and pace of deterioration in trading conditions we have experienced over the last year has been substantial, but this only hardens our resolve to respond rapidly, to transform what is in our control, and to set the foundations for Spark to once again deliver strong shareholder returns.”
Spark’s data center footprint currently comprises around a dozen facilities totaling 22MW, with more than 100MW reportedly in development.
Spark's data center strategy comprises both large, centralized data centers such as those in Auckland (x3), Waikato, Wellington, and Christchurch (x3), alongside Edge locations in regional cities such as Hamilton, Tauranga, and Dunedin.
In the FY 2025 first half-year results, Spark’s data center revenue increased 13.6 percent to NZ$25 million (US$14.8m).
The company recently completed the sell off of its Connexa tower unit. The telco sold its remaining ~17 percent in Connexa to investment group CDPQ for ~NZ$311m (US$184.1m) in February. Connexa is now equally owned by CDPQ and Ontario Teachers' Pension Plan.
