GDS Holdings, a developer and operator of high-performance data centers in China, announced that it has agreed with a private equity fund controlled by CITIC Private Equity Funds Management, an alternative asset manager in China, to form a joint venture to undertake a major new data center project in Beijing (“BJ13”).
Expansion with the new data center project in Beijing
According to the announcement, GDS will own a 58% controlling interest in the JV, while CPE Fund will own 42%. The JV has taken an 82% equity interest in Tenglong IOT (Beijing) Data Technology through the acquisition of shares and injection of new capital. The data center project in the Tongzhou district of Beijing has been approved by government.
Mr. William Huang, Chairman and Chief Executive Officer said,
“ In the past few years, we have successfully generated a lot of new capacity, both organically and through acquisition, in Tier 1 markets where supply is scarce. In particular, we have substantially grown our market share in Beijing, the largest Tier 1 market in China. CPE Fund is a highly respected investor with extensive experience in the data center sector. Our partnership is an innovative way of combining strengths to develop valuable new capacity. GDS will continue to focus on developments in key strategic locations and further strengthen our market leading position.”
BJ13 will generate a total net floor area of approximately 21,000 square meters. The company plans to complete this facility in two phases with about 10,500 sqm expected to enter service in early 2022 and the remaining 10,500 sqm in mid-2023. GDS assumes responsibility for data center construction on a turnkey basis. After completion, GDS will acquire CPE Fund’s 42% equity interest in the JV.