TPG Seeks to Acquire UK Data Center Group Ark in Deal Worth About $5 Billion
Key Facts
Private equity firm TPG is seeking to acquire UK data center group Ark in a deal worth about $5 billion, the Financial Times reported on October 28, 2026. The report puts a company that operates substantial assets in the UK and Belgium in line for a possible change of ownership to TPG, but the figure cited is an estimate of the potential deal value. The newspaper said in its report headline that "TPG seeks to buy British data center group Ark for $5 billion." That description does not establish that negotiations have reached an advanced stage. The potential deal matters because of the scale of Ark’s portfolio, which includes operating centers and projects under development, and its presence in hosting data for UK government bodies.
Ark’s portfolio comprises 27 data centers across 9 sites in the UK and Belgium, whether operating or under development, according to data published by Data Center Dynamics through June 2026. The centers’ total capacity exceeds 560 megawatts, indicating the scale of the assets that could be included in the deal. The company operates beyond the UK, with sites in Belgium as well. The count includes existing facilities and projects that have not yet begun operations, so it does not represent the number of operating centers alone. Published information does not detail how capacity is distributed among sites or the terms of the potential acquisition.
Elliott Investment Management controls Ark, having acquired it in 2012 through its private equity arm, while European real estate investor Revcap retains a minority stake, according to a Reuters report. The report adds that Ark has a joint venture with the UK Cabinet Office called Crown Hosting Data Centres to provide data hosting services to government bodies. The venture links part of the company’s business to government contracts and services, alongside its commercial data center operations. The report did not specify the value of Revcap’s stake or the terms of the joint venture. It also did not say whether any of these arrangements would change if a deal with TPG were completed.
Reuters reported on September 29, 2025, that Elliott was exploring strategic options, including a sale of Ark, with a potential valuation estimated at more than £3 billion. This provides earlier context for market interest in the group’s ownership, but does not establish that the previous estimate is equivalent to the deal value in dollars reported by the Financial Times in October 2026. Between the two reports, Ark announced in June 2026 an investment of £807 million in the Longcross campus in Surrey to support the expansion of AI cloud services provider Nebius. The announcement ties the spending specifically to the expansion of that campus. Available information does not say whether the investment is part of potential sale arrangements or how it would affect the group’s valuation.
The potential deal comes amid broad estimates of the sector’s need for new investment. Reuters cited McKinsey’s estimate that data center investment will reach $6.7 trillion by 2030 to meet demand for computing capacity linked to AI and cloud services. In Great Britain, the number of operational data centers rose from 221 in 2020 to 239 in 2024, according to Energy Department data cited by the Office for National Statistics. These centers also consumed 4.5 terawatt-hours of electricity in 2024, or 2% of grid electricity. Their consumption increased by 1.3 terawatt-hours, or 41%, between 2020 and 2024. The government classified data centers as critical national infrastructure, alongside essential functions such as energy and water supplies.
Supply forecasts for the London region reflect continued market expansion alongside demand growth. CBRE expects 180 megawatts of supply to be added in 2026, compared with 193 megawatts added in 2025, a record increase, according to the company. These figures place site expansions and construction projects among the sector’s defining features, alongside centers already in operation. In the broader UK economy, the preliminary composite output index rose to 53.1 points in October from 52.0 in September, and S&P Global said activity grew at its fastest pace since February. However, this reading does not explain the Ark deal or link it to the deal.
The UK’s 2026 budget is due to be presented on October 28, the Treasury confirmed. The date is the same as the publication date of the Financial Times report on TPG’s bid for Ark, but the budget is separate from the potential deal. Available information does not include an announcement of a final agreement or details on a timetable for completing the acquisition. Nor have the deal’s financing terms or the treatment of Revcap’s minority stake and the government hosting joint venture been specified. The figure of about $5 billion remains the newspaper’s estimate of the deal.