Hillhouse and Boyu discuss investment in GDS’s Southeast Asia data centers

Hillhouse Capital, Boyu Capital, and CDH Investments are currently in advanced discussions regarding an investment in GDS Holdings Ltd.’s data center business outside of China. Sources familiar with the matter reveal that this development has sent the company’s shares to surge by as much as 24% in the Hong Kong market.

While negotiations are ongoing, there is a possibility of reaching a comprehensive investment agreement totaling between $500 million and $600 million in the coming weeks. It’s essential to note that no final decisions have been made, and the discussions remain confidential. Additionally, there is a potential for other investors to participate in the deal, as suggested by the sources.

No comments were provided by representatives of Hillhouse, a longstanding investor in GDS, in response to a comment request. Similarly, Boyu, CDH, and GDS did not respond to requests for comments. Private equity firms, traditionally centered on China, are progressively redirecting their focus towards other regions, such as Southeast Asia.

GDS develops and operates dozens of data centers in cities including Beijing, Guangzhou, Shanghai and Shenzhen, according to its website. As part of its expansion overseas, it is providing services at a third-party data center in Singapore and building facilities in Malaysia and Indonesia.

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