GDS Holdings Limited, a developer and operator of high-performance data centers in China, acquired a third party site in Pujiang Area, Minhang District of Shanghai, for a total consideration of RMB1.37 billion. 212,000 square meters of the total land area will be used for a major new data center campus. Thanks to this acquisition, the company will have long term security of tenure and control over the design and phasing of the development
Expanding footprint in Tier-1 market
For the first phase, GDS plans to convert two existing industrial buildings into data centers. The construction is expected to be completed in early 2021. William Huang, Chairman and Chief Executive Officer of GDS, said:
“Shanghai is a high-priority location for our customers, and we’re excited to be expanding and strengthening our footprint in this extremely desirable and resource constrained Tier-1 market.”
“We already have strong customer demand in-hand and are confident that Phase 1 will sell out quickly. The acquisition of additional land in Shanghai, coupled with the strong support of the local government when it comes to the digital economy, will enable us to meet the region’s growth in cloud adoption and the need for low-latency infrastructure,” he added.
In December, GDS bought equity interests in several unnamed companies that own a data center campus in the Shunyi district of Beijing. The company expects to finalize the acquisition in the first half of 2020. When the deal is finalized, GDS will be paying around ¥785m ($109.9m).
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