Billionaire Lei Zhang’s Hillhouse Investment, Boyu Capital, and other investors have agreed to purchase a 44% stake in GDS Holdings’ data center assets outside mainland China for $587 million. Shanghai-based GDS Holdings will maintain a 56% stake in Singapore-based GDS International post-transaction. The remaining portions of the company will be owned by investors in the series A convertible preferred shares including Boyu Hillhouse, Princeville Capital, Rava Partners, and Tekne Capital. The deal gives GDS International an enterprise value of $2.3 billion and aims to meet the growing demand for data centers in Asia driven by cloud service giants such as Amazon and Google.
GDS International currently has 330 megawatts of data center capacity in operation or under construction, with an additional 340 MW reserved for future development across Hong Kong, Singapore, Malaysia, and Indonesia. This strategic move will provide dedicated financing for the expansion of the company’s international business, with a focus on establishing market-leading positions in key locations such as Hong Kong and Singapore-Johor-Batam. William Huang, chairman and CEO of GDS Holdings and chairman of GDS International, expressed optimism about the growth potential in these markets and other new markets that are under evaluation.
The company has already secured commitments and reservations from global and Chinese customers for over 200 megawatts of data center capacity, with more than 70 megawatts already generating revenue. In total, GDS International has raised over $1 billion in paid-up capital, which includes funding from parent company GDS Holdings as well as the additional capital injection from series A investors. The transaction signifies a significant milestone for GDS International’s future growth and expansion plans in the competitive data center market.
As companies worldwide ramp up the development of data centers to meet the increasing demand for cloud services, investments in data center assets are becoming more attractive. The deal between GDS Holdings and its investors underscores the growing importance of data centers in the digital economy. With a strong presence in key markets in Asia and a solid track record of securing customer commitments, GDS International is well-positioned to address the needs of cloud service providers and other businesses looking to expand their data center capabilities.
The $587 million investment from Lei Zhang’s Hillhouse Investment, Boyu Capital, and other investors reflects a vote of confidence in GDS International’s growth prospects and strategic direction. By maintaining a majority stake in the company post-transaction, GDS Holdings demonstrates its commitment to furthering the development of its international business. The completion of the deal is expected to strengthen GDS International’s position in the competitive data center market and pave the way for future expansion opportunities in the rapidly evolving digital landscape.
With over $1 billion in paid-up capital and a diverse portfolio of data center assets across Asia, GDS International is poised for continued growth and success in the coming years. The company’s focus on providing dedicated financing for its international business and expanding into new markets highlights its commitment to meeting the evolving needs of customers in the fast-paced digital era. As the demand for data center services continues to rise, investments in data center infrastructure are expected to remain a key area of focus for companies looking to capitalize on the opportunities presented by the growing digital economy.
