Blackstone, the private equity behemoth which has become one of the world’s largest real estate investors, is in talks to buy a major constructor of data centres in a deal that would underline shifting trends in the global economy.

Sky News has learnt that Blackstone is the frontrunner to acquire Winthrop Technologies, a privately owned company based in Ireland, for a price believed to be in the region of £700m.

If completed, it would mark Blackstone’s latest deal in the burgeoning data centre sector, which is being fuelled by exploding demand for computing power.

The New York-listed investor paid $10bn (£8bn) to buy QTS, an operator of data centres, in 2021.

The size of the stake that Blackstone is in talks to buy was unclear on Monday, although it is understood to be a controlling shareholding.

Winthrop provides so-called turnkey solutions for clients – designing and building data centres in a number of European countries including Germany, Ireland, the Netherlands and Sweden.

Read more from business:
CBI settles legal case brought by sacked boss
Campaign for tourist tax U-turn ‘not just about rich shoppers’
Unemployment rate may be much lower than estimated

Be the first to get Breaking News

Install the Sky News app for free

Its customers include Google and Microsoft, underlining the importance of contractors to service one of the global economy’s fastest-growing trends.

Such facilities are becoming increasingly important as the rise of artificial intelligence applications is expected to trigger a surge in demand for large-scale data centres.

Winthrop reported last year that its turnover had exceeded €1bn (£855m) for the first time, with profits estimated at more than €100m (£86m).

It added that it expected to create hundreds of new jobs by the end of 2024.

Rothschild, the investment bank, is understood to be advising Winthrop on the talks.

Blackstone declined to comment, while Winthrop could not be reached for comment.

Related posts:

Morrisons extends 10% discount for NHS staff amid pay row for nurses Brexit import checks delayed ‘in the nick of time’ Number of employees on UK payrolls returns to pre-pandemic levels Ministers sign off compensation for postmasters hit by IT scandal Mixed bag for Ocado as labour shortage hurts retail arm but group wins patent victory Which shops will be open and which will be closed on the day of the Queen’s funeral? Co-ordinated strikes could happen ‘very soon’, union boss warns Trainline rival Seatfrog books £6m raise for next leg of journey Microsoft lodges appeal against block on $75bn Call of Duty deal Farage fury as bank regulator finds no evidence of account closures due to views Could a February budget give the government more wiggle room? Wage growth and company insolvencies