Data centre GDS to invest in deals outside China

GDS Holdings, a Chinese data centre developer and operator, is in discussions with several private equity investors about investing in its operations outside the country.

The Hong Kong-listed company commented on a stock exchange filing that Hillhouse, Boyu Capital and CDH Investments are in advanced talks to invest in GDS’ data centre business outside China.

The comment cited people familiar with the matter and added that an agreement on a total investment of $500 million to $600 million may be reached as soon as possible in the coming weeks.

“However, as of the date of this announcement, no definitive legal agreements relating to any private equity capital raising have been entered into, and there can be no certainty that any transaction will proceed or, if it does, what the structure of such a transaction may be,” GDS said in the filing.

GDS added that it had previously been reviewing options on the capital needs of its international business, including the possibility of raising capital for its international business from private equity investors.

Infrastructure assets such as data centres have been gaining investors’ interest in Asia.

Reuters/Chidimma Gold