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MGX makes its first overseas play: Abu Dhabi-based AI investment company MGX has reportedly joined a consortium led by IFM Investors, DigitalBridge, Silver Lake Management, and Global Infrastructure Partners (GIF) in bidding for Australian data center operator AirTrunk, the Australian Financial Review reports. The sale of AirTunk is expected to be one of the largest digital infrastructure transactions in Asia Pacific this year.
Background: AirTrunk kicked off the sale process in March, seeking around USD 20 bn, with at least two bidders in the fray, Bloomberg reports. US alternative investment manager Blackstone has also reportedly shown interest in AirTrunk. Private credit funds are reportedly looking to provide AUD 1.5 bn (c. USD 978 mn) in junior debt to support a potential buyout of the data center operator. This financing would be accompanied by a AUD 7 bn (c. USD 4.5 bn) loan from several banks including HSBC Holdings and Credit Agricole.
REFRESHER- MGX, formed last March by the Artificial Intelligence and Advanced Technology Council, is targeting more than USD 100 bn in assets under management in a few years. The company was reportedly also looking to invest in OpenAI’s new AI chip and power production venture, which is estimated to require some USD 7 tn.
About AirTrunk: The data center giant designs, builds and operates some of the largest independent hyperscale data centers in Asia Pacific, spanning Australia, Singapore, Hong Kong, Japan, and Malaysia. The data center operator was sold in 2020 to Macquarie Infrastructure & Real Assets, in a transaction that valued AirTrunk at AUD 3 bn (c. USD 2.1 bn).
