Chinese data center giant GDS Holdings has confirmed engaging in discussions with prominent private equity investors for potential investments in its international operations. The Hong Kong-listed company addressed the talks in response to reports stating that heavyweight investors like Hillhouse, Boyu Capital, and CDH Investments are in advanced negotiations to inject $500-600 million into GDS’ data center business outside China.
While the discussions are ongoing, GDS emphasized that no definitive legal agreements regarding private equity capital raising have been finalized, and the outcome remains uncertain. The company had previously indicated its exploration of capital options for its international business, leaving the door open to potential collaboration with private equity investors.
Hillhouse, Boyu, and CDH have not provided immediate comments regarding the reported talks.
The growing interest in infrastructure assets, particularly data centers, among investors in Asia is evident. In a similar trend, global investment firm KKR & Co made a significant move in September by acquiring a 20% stake in Singapore Telecommunications’ regional data center business for a substantial $1.1 billion.
As technology and data usage continue to surge, GDS Holdings’ potential collaboration with heavyweight investors signals a strategic move to leverage private equity support for its international expansion, tapping into the thriving market for data center services in the region.
