Digital Edge Weighs Sale in Deal That Could Value It at Up to $10 Billion

Surging AI Computing Demand Prompts Asian Data Center Giant Digital Edge to Consider Sale

According to multiple people familiar with the matter, Asian data center operator Digital Edge, backed by alternative asset management firm Stonepeak Partners, is actively exploring a range of strategic options including a potential sale. The news underscores how the strategic value of data center infrastructure in the AI era is being repriced by capital markets.

Working With JPMorgan on Review; Valuation Could Reach $10 Billion

Sources say the Singapore-headquartered company is currently working with international investment bank JPMorgan to conduct a comprehensive review that could lead to a partial or full sale of the business. The deal could value Digital Edge at up to $10 billion (approximately 72.5 billion Chinese yuan), a figure that fully reflects the market's appetite for premium data center assets in the Asia-Pacific region.

Sources also noted that other infrastructure-focused funds and industry participants may express strong interest in the asset. However, discussions are still in their early stages and no final decisions have been made. Digital Edge may ultimately decide not to proceed with any transaction.

Hyperscale Cloud Demand Accelerates as AI Wave Drives Up Asset Values

Notably, some of the people familiar with the situation pointed out that over the past 18 months, Digital Edge has seen accelerating leasing demand from U.S. hyperscale cloud providers. This trend is closely tied to the explosive growth of the global AI industry — as demand for computing power for large language model training and inference continues to surge, tech giants such as Microsoft, Google, and Amazon are aggressively expanding their data center footprints across the Asia-Pacific region, driving up valuations of data center assets in the area.

Digital Edge operates data centers across several key Asian markets, covering core nodes including Japan, South Korea, and Indonesia. These regions are not only among the fastest-growing markets in the global digital economy but also at the forefront of AI application deployment. For international investors and operators seeking entry into the Asia-Pacific market, Digital Edge represents an exceptionally attractive target.

Global Data Center M&A Frenzy Continues to Heat Up

Digital Edge's potential transaction is merely a microcosm of the broader global data center M&A frenzy. Since ChatGPT ignited the generative AI wave, valuations and deal activity for global data center assets have risen significantly. Since 2024, multiple large-scale data center acquisitions have been completed, and the pace of industry consolidation has clearly accelerated.

Infrastructure investment funds, sovereign wealth funds, and major technology companies are all ramping up their investments in the data center sector, viewing these assets as the most critical "digital real estate" of the AI era. Analysts note that as AI model sizes continue to grow and inference demand explodes, the scarcity of premium data center resources will become even more pronounced, and valuations of related assets still have room to rise.

Outlook: Bright Prospects for the Asia-Pacific Data Center Market

Regardless of whether Digital Edge ultimately proceeds with a sale, this development sends a clear signal: the Asia-Pacific data center market is becoming a focal point for global capital competition. As governments across the region accelerate their AI strategies and enterprise digital transformation continues to deepen, the Asia-Pacific data center industry is poised to enter a new wave of growth opportunities. Further developments in potential transactions warrant continued market attention.