Nasdaq-listed VNET Group, Inc., a leading carrier- and cloud-neutral Internet data centre services provider in China, has signed a master joint venture investment agreement with a sovereign wealth fund to pursue development and investment opportunities in multiple build-to-suit hyperscale data centre projects in China.
The name of sovereign wealth fund was undiclosed. Pursuant to the Master Agreement, VNET will establish individual project companies to undertake the development of each data centre.
Investments for Hyperscale DCs
Upon completion of the development of each data centre, VNET will transfer 49 per cent equity interest in each project company subject to certain conditions, the company said. VNET will hold the remaining 51 per cent equity interest of each project company. Meanwhile, VNET will also provide management and operating services to all the JVs. The first targeted capital commitments from VNET and the joint venture partner in respect of the investments under the Master Agreement are expected to reach RMB 5 billion.
Samuel Shen, Chief Executive Officer of VNET, said, “We are excited to partner with the sovereign wealth fund to form joint ventures for the development and operation of multiple hyperscale data center projects in China. As the entire market maintains its ongoing trend towards digitalization, the demand for hyperscale data centers continues to show strength. These joint ventures will serve as dedicated vehicles focusing on the development and operation of build-to-suit data centers in China, allowing us to capitalize on growing data center demand and further strengthen our market position.”
VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 6,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.