Private equity firm Warburg Pincus is collaborating with SC Capital Partners to explore a potential acquisition of Global Switch Holdings Ltd, a data-centre operator. Sources familiar with the situation, who wished to remain anonymous, indicated that the consortium is also in discussions with other investors to join their efforts.

SC Capital, based in Singapore, is working alongside Goldman Sachs on the acquisition bid and has secured approximately $3 billion in loan facilities for this purpose. Meanwhile, Global Switch is being advised by Morgan Stanley and UBS Group on the sale process. Previous attempts to divest its UK operations were halted, but the current owners are aiming for a deal valued between $6 billion and $7 billion, including debt.

Negotiations are still in progress, and there is no certainty that they will lead to a finalized transaction. Global Switch operates data centres in key locations across Europe and Asia, including cities like Amsterdam, Frankfurt, Hong Kong, Paris, and Singapore. The company is owned by a consortium that includes Jiangsu Shagang Group Co., Ltd., a Chinese steelmaker, and Avic Trust Co., Ltd. They acquired control of Global Switch from British billionaires David and Simon Reuben through a series of transactions starting in 2016.

SC Capital, founded in 2004, is an Asia-Pacific real estate investment firm with investments totaling around $6 billion across eight markets. Last year, CapitaLand Investment Ltd purchased a 40% stake in SC Capital for $219 million and committed to invest an additional $524 million in strategic capital.

Warburg Pincus has been active in the Asian data centre market since 2017, with investments including Princeton Digital, which recently attracted a $1.3 billion investment from Stonepeak Partners.

Representatives from Global Switch, Goldman Sachs, Morgan Stanley, SC Capital, Warburg Pincus, and UBS declined to comment on the ongoing discussions, while Shagang Group did not respond to inquiries.