Press Release

GDS in talks for international expansion of data center business

Tue 12 Mar 2024

GDS Holdings has disclosed ongoing discussions with several private equity investors aimed at funding its operations beyond China.

This revelation came through a stock exchange filing in response to Bloomberg News’ report that firms like Hillhouse,

Boyu Capital, and CDH Investments are in advanced stages of negotiations to invest up to £469.6 million ($600 million) in GDS’ international data centre business.

Clarification Amid Speculation

GDS clarified that although talks are underway, no definitive legal agreements have been signed, leaving the future of any potential deal uncertain.

The company said it had previously been reviewing options to meet the capital needs of its international ventures, hinting at private equity involvement.

This announcement aligns with GDS Holdings’ strategy to evaluate its capital needs for expanding its global footprint, promising compliance with legal requirements for any future transactions.

GDS refrained from specifying which companies it is in discussions with.

The company urged shareholders and potential investors to exercise caution and rely only on official company announcements for investment decisions, warning against speculation and unofficial media reports.

Hillhouse responded to inquiries by stating their policy of not commenting on market rumors or speculation.

“As a matter of policy, we do not comment on market rumors or speculation,” said Hillhouse in a response to Reuters‘ query on Tuesday.

Meanwhile, Boyu and CDH have yet to respond to requests for comment on the matter.

Investor Interest in Data Centres

The interest in infrastructure assets like data centres is on the rise in Asia, evidenced by significant investments such as KKR’s acquisition of a 20% stake in Singtel’s regional data centre business.

This trend underscores the growing value and potential of data storage and management facilities in the digital era.

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