Spark NZ is selling a 50% stake in its data centre portfolio, aiming to raise funds for expansion and reduce debt amid shifting market dynamics.

According to reports, Spark New Zealand, the biggest telecom provider in the nation, has started an auction to locate a co-investor for its portfolio of data centers. This can have a value of up to $1.1 billion ($1.2 billion). According to the Australian Financial Review, Jarden has been ordered to find purchasers for a stake in the platform, which is why Spark is listed on both the NZX and the ASX.

According to sources, Jarden has been sending out pamphlets to the infrastructure funds, asking them to produce bids to acquire almost 50 percent of the Spark platform that has a capacity of 22 megawatts but possesses more than 118MW development capacity in hub cities such as Auckland.

Spark believes that the data center platform will be the major growth area of AI and cloud technologies. Earlier this year, the company said it may explore the sale of its assets to realize the NZ$1 billion needed for reinvestment. The deal is being managed by Sydney telco managing director Yan Hui Tan in conjunction with infrastructure bankers from New Zealand. Expert Macquarie analysts estimate that the Spark transaction might generate $NZ47 million in EBITDA this fiscal year.

The latest endeavor of telecom giants selling off infrastructure assets to reduce debt and create more value for their shareholders is the sale of data center facilities. Telstra was not alone in selling data centers and checking investor interest in its two assets earlier in 2025. Furthermore, it was reported in April that Blackstone might sell two AirTrunk data centers located in Australia.