- GDS Holdings is considering selling a stake in its international data centre business, with discussions ongoing with multiple private equity firms about a potential transaction.
- The company, which operates data centres in China and is expanding in Malaysia, Indonesia, and Singapore, has not yet reached any definitive agreements.
- GDS, which went public in New York in 2016 and in Hong Kong in 2020, counts STT GDC and Hillhouse Capital among its major investors.
GDS Holdings, a Chinese data centre provider, is exploring the sale of a portion of its international operations. In a communication to investors, GDS revealed it is engaging with several private equity firms about a possible deal regarding its global business segments. The company highlighted that no final agreements have been reached yet, and there’s no guarantee that a transaction will materialise or what its terms might be.
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The parties it was negotiating with are not specified
Recent reports indicated that Hillhouse Capital, Boyu Capital, and CDH Investments are nearing a deal to invest in GDS Holdings’ data centre operations outside of China, although GDS did not specify the parties it was negotiating with.
Established in 2006, GDS manages a network of data centres in major Chinese cities including Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, and Hong Kong. The firm is also expanding internationally, with projects underway in Malaysia’s YTL campus and Nusajaya Tech Park in Johor, as well as in Batam, Indonesia, and Singapore.
Since its $200 million IPO in New York in 2016, GDS has been publicly traded, and it further expanded its financial base with a listing in Hong Kong in 2020, raising approximately HK$14.9 billion ($1.9 billion). STT GDC is among the major investors in GDS, with Hillhouse Capital also holding a significant investment stake in the firm.
