As previously reported on Techerati, Global Switch was in talks for an $8 billion sale with bidders. However, people close to the matter told Bloomberg that talks have almost come to a complete stop due to tightening financing conditions and lower-than-expected bids for the British-based data centre company.
Global Switch’s owners in China and potential bidders failed to bridge a value gap from the original $10 billion sought by the sellers, Jiangsu Shagang Group Co. and Avic Trust Co.
As of November, the company was considering bids from buyout firms including EQT, KKR, and PAG. While some potential buyers are still involved, access to financing and differing valuation estimates remain key hurdles.
Global Switch has looked at several options in the past, including an IPO, prior to the most recent proposal of sale.
In more positive news, Global Switch recently gained permission to create a data centre in East London by the local zoning committee.
A new Global Switch data centre in London
The new facility will be located in a former parking garage near the company’s North London data centre located in the East India Dock House. The new data centre will also be connected to the existing Global Switch London East facility.
The company will be responsible for building a connecting bridge over Nutmeg Lane, as well as providing landscaping, parking, lighting, and refuse accommodations. The new data centre will take up 7,000 sqm of floor space within a part-six and part-seven story building.
Initially, the Greater London Authority was concerned that the proposed data centre would impact views of the East India Dock House, which is itself a Grade II listed building. However, the Authority allowed that the benefits of an additional data centre would be greater than the harm to views of the Dock House.
The application filed by Global Switch noted that while the new facility would be taller than the East India Dock House, care would be taken in design and execution so that the London North building could still be seen from multiple perspectives.
This information was included in the minutes of the Tower Hamlets Council meeting, but an official announcement from the company has not yet been released.