Tenglon claims record investment to build data center

Tenglong Holding Group claimed that it breaks the highest financing record in the internet data center industry with a contract value of up to $3.7 billion.

A Chinese data center operator claimed in November that it gets the world’s largest venture capital deal, with billions of dollars. According to Tenglong Holding Group’s statement, this was the most significant private investment in the history of the internet data center industry with a contract value of up to $3.7 billion. This investment put up by Morgan Stanley and a government-owned industrial conglomerate. Morgan Stanley, a core investor in the Tamron round, refused to confirm details.

Golden period of data center industry

Glen Walker, a managing director of early-stage venture capital at the accounting services giant PwC explains this deal, saying: “It’s unheard of. It’s not typical in any way.”

Ren Shaolong, founder and chairman of Tamron Holdings Group, told a press conference in November that data centers had become an important part of China’s national economic plan. “Cloud computing has become as essential as water, electricity, or coal for all industries to practice “Internet+. The data center industry has entered a golden period of development,” he added.

Morgan Stanley and Nanshan Group are core investors

The other investors are Nanshan Group, a Chinese industrial conglomerate, Kaiyuan Urban Development Fund, Haitong Hengxin International Leasing Co., Huaneng Invesco, and Ross.

According to Tenglong, several other investment institutions had clear intent to stake capital with the Morgan Stanley group. Nanshan Group will strongly support Tenglong’s future high-speed development. It will help Tenglong accelerate the nationwide layout.

Ian Zhu, head of China Outbound Investment for accountants Grant Thornton, explained the deal’s extraordinary size as the involvement of land.

The aim of the company is to build data centers with cooperating with the local government’s industrial planning. First-tier Chinese cities own Baowan, according to the announcement. By September this year, Tenglong had won contracts to supply 76,000 square meters of data center space. In October, the company formed a strategic partnership to build data centers with Shanghai Lingang Science and Technology Innovation City Economic Development Co., a local construction firm with ventures in San Francisco and Glasgow.

Cooperating with the local government’s industrial planning

The company said:

“Since it was founded in 2015, Tenglong built strategic partnerships with China’s three major telecommunications operators: China Unicom, China Mobile, and China Telecom. It has 10 data centers under construction, building and operating them for internet giants Alibaba, Tencent, and Baidu.”

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