I Squared Considers $2 Billion Sale of BDx Data Center Business

I Squared Considers $2 Billion Sale of BDx Data Center Business

Global private equity giant I Squared Capital has begun evaluating sale options for its Asia-Pacific data center affiliate Big Data Exchange (BDx). According to industry sources, a potential transaction could value the company at approximately $2 billion. This move indicates a new phase in the wave of consolidation sweeping the data center sector, driven by supply pressures from the artificial intelligence and cloud computing boom.

I Squared Capital made its investment in BDx in 2020. Since then, the company has strengthened its assets in China, Hong Kong, and Singapore, becoming a significant regional player. The surging demand for high-performance computing (HPC) infrastructure required to process AI applications and machine learning models has multiplied the value of regionally specialized operators like BDx.

Market Dynamics and Consolidation Trend

The data center market has been undergoing an unprecedented period of growth and transformation in recent years. Alongside increasing capacity demands from cloud service providers (hyperscalers), the specialized cooling and power infrastructure requirements of AI workloads are reshaping the industry's physical and financial dynamics. In this environment, merger and acquisition (M&A) activity has accelerated among global and regional players seeking to leverage economies of scale and invest in new technologies.

BDx's entry into a sales process is viewed as part of this broader trend. Private equity firms typically realize value from their portfolio companies through exits within 3-7 year investment cycles. I Squared's move suggests BDx has reached a stage of maturity and has become an attractive asset for strategic buyers in the industry. The transaction would highlight the strategic premium placed on digital infrastructure assets with exposure to high-growth AI and cloud markets in Asia.

The outcome of this sale process will be closely watched as a barometer for valuation trends and investor appetite in the specialized data center segment, particularly for assets serving the complex needs of next-generation computing.