Billionaire Lei Zhang’s Hillhouse Funding and Boyu Capital have agreed to buy a 44% stake in GDS Holdings’ information heart property exterior mainland China for $587 million. This funding will enable Shanghai-based GDS Holdings to retain a 56% stake in its Singapore-based subsidiary, GDS Worldwide, after the transaction is accomplished. The remaining possession in GDS Worldwide can be held by traders within the sequence A convertible most well-liked shares resembling Boyu Hillhouse, Princeville Capital, Rava Companions, and Tekne Capital. The transaction provides GDS Worldwide an enterprise worth of $2.3 billion, together with forecasted debt for the yr.
GDS Worldwide at the moment has 330 megawatts of information heart capability in operation or underneath development, with an extra 340 MW designated for future improvement throughout Hong Kong, Singapore, Malaysia, and Indonesia. Chairman and CEO of GDS Holdings, William Huang, expressed his pleasure for the corporate’s development potential, stating that the capital elevating is a big step ahead of their technique to safe devoted financing for the event of their worldwide enterprise on a standalone foundation. In a brief time period, GDS Worldwide has established market-leading positions in main hub markets resembling Hong Kong and Singapore-Johor-Batam, with plans for additional growth into different new markets.
GDS Worldwide has already garnered commitments and reservations from each world and Chinese language clients for over 200 megawatts of information heart capability, with greater than 70 megawatts already producing income. The corporate has raised over $1 billion in paid-up capital, together with funds injected by father or mother firm GDS Holdings and the recent capital from the sequence A traders. This funding highlights the rising demand for information facilities in Asia, pushed by the growing want for cloud companies offered by tech giants like Amazon and Google.
Firms are ramping up the event of information facilities throughout Asia to satisfy the rising demand for cloud companies, spurring investments such because the one made by Hillhouse Funding and Boyu Capital in GDS Holdings’ information heart property. This inflow of capital will allow GDS Worldwide to additional increase its presence in key markets and capitalize on the alternatives for development throughout the area. With a robust portfolio of information heart capability and a rising buyer base, GDS Worldwide is well-positioned to leverage this funding to drive its worldwide enterprise ahead and solidify its place as a key participant within the information heart trade.
The acquisition of a big stake in GDS Holdings’ information heart property exterior mainland China represents a strategic transfer by Hillhouse Funding, Boyu Capital, and different traders to faucet into the rising demand for information heart companies in Asia. The enterprise worth of $2.3 billion for GDS Worldwide underscores the attractiveness of the corporate’s property and the potential for future development in key markets resembling Hong Kong and Singapore. As the info heart trade continues to evolve, investments like this may play a vital function in supporting the growth and improvement of infrastructure to satisfy the growing demand for cloud companies and digital connectivity throughout the area.
