An American private equity firm has entered talks to acquire one of Europe’s largest independent data centre operators in a deal valued at approximately $5 billion. TPG is negotiating with Elliott Management, a U.S.-based hedge fund, to purchase Ark, a Wiltshire-based company that operates 27 data centres throughout the United Kingdom and Belgium.

If completed, the transaction would represent one of the largest global data centre deals recorded this year. Ark is notable for its joint venture with the UK Cabinet Office, through which it supplies data centre capacity to public sector organisations. The strategic partnership highlights Ark’s significant role in supporting government digital infrastructure.

While discussions are ongoing, sources caution that the talks may not culminate in a definitive agreement. Both sides remain engaged, but there is no guarantee that a deal will be finalised.

The potential acquisition underlines continued investor interest in data infrastructure as demand for cloud services and digital connectivity grows across Europe and beyond. The data centre industry has seen increasing consolidation as companies seek to scale their operations and meet the rising needs of public and private sector clients.

Ark’s ownership by Elliott Management — a prominent hedge fund with diverse investments — has positioned the group for possible sale amid the robust valuation environment for infrastructure assets. TPG, with its track record in large-scale investments, appears poised to expand its footprint in the data centre market should the acquisition proceed.

Further details regarding the negotiations and their timeline remain confidential, with parties involved declining to comment publicly on the status of the talks.