Prefabricated data center specialist Brightray Science Inc. yesterday announced that Nasdaq-listed MICE solutions provider BUUU Group Limited has entered into a definitive agreement to acquire a 60 per cent equity interest in Brightray.
In connection with the transaction, BUUU has entered into private placement agreements with certain investors which, together with potential proceeds from the cash exercise of outstanding warrants, are expected to generate aggregate gross proceeds of more than US$60 million. The proceeds will be used to support Brightray’s capacity expansion and working capital requirements.
BUUU also plans to relocate its headquarters to Singapore, further supporting Brightray’s platform to expand prefabricated data center delivery across Southeast Asia, the United States, the Middle East and Europe, according to Brightray’s press release.
Upon completion, Brightray will become a consolidated subsidiary of BUUU. The sellers of Brightray will continue to hold a 40 per cent equity interest in Brightray while BUUU will hold a call option to acquire the remaining equity interest during the three-year period following closing.
The management and board of directors of BUUU remain the same while founder of Brightray, Bin Wang is expected to join BUUU as Executive Director and Co-Chief Executive Officer.
Previously supported by Tencent-affiliated investors, Brightray manufactures, integrates and tests more than 90 per cent of a data center facility in a factory environment, compressing the delivery cycle for full prefabrication projects from a conventional 18 to 36 months to six to nine months. Its manufacturing base spans 126,000 square meters capable of delivering 300MW of annual production capacity.
Brightray’s flagship project is the 120MW Sedenak Tech Park campus in Johor, Malaysia, where 70MW is in operation serving internet and cloud customers. The first 20MW was completed in only eight months, with a further 50MW scheduled for delivery.
“We made the data center one of the fastest parts of AI instead of the slowest,” said Brightray founder, Wang. “With BUUU’s capital base and international profile, we will bring this model to global markets.”
BUUU management said, “In the AI era, the bottleneck is not the chips, but the buildings, power and cooling that chips require to operate. Brightray has turned that bottleneck into a manufacturable industrial product and validated it at hyperscale.”
Global data center demand is expected to increase to approximately 219GW by 2030, nearly triple the current level, while traditional construction cycles, skilled labor availability, power and cooling resources remain key constraints.