A data processing system includes first and second processing units and a system memory. The first processing unit has first upper and first lower level caches, and the second processing unit has second upper and lower level caches. In response to a data request, a victim cache line to be castout from the first lower level cache is selected, and the first lower level cache selects between performing a lateral castout (LCO) of the victim cache line to the second lower level cache and a castout of the victim cache line to the system memory based upon a confidence indicator associated with the victim cache line. In response to selecting an LCO, the first processing unit issues an LCO command on the interconnect fabric and removes the victim cache line from the first lower level cache, and the second lower level cache holds the victim cache line.