Chayora set to complete two hyperscale data centre hubs in China after $180m Series C funding
China-based data centre provider Chayora has secured a $180m Series C funding from Actis Asia Real Estate Fund.
Actis and Chayora have reached an agreement for AAREF and other Actis managed funds to invest up to a further $180m equity in Chayora’s Series C round of funding and has completed the $64m first tranche of the investment.
This is in addition to the original Series B investment made by the Actis team in March 2016 when part of Standard Chartered Principal Finance Real Estate, resulting in AAREF securing a majority holding in Chayora.
The company revealed that the Series C funding will provide Chayora with expansion capital for its data centre development projects.
Combined with project debt of $250m, it will enable Chayora to complete two hyperscale data centre facilities on the Chayora’s Tianjin campus and acquire land bank for further growth.
With this initial completion of the Series C funding agreement, AAREF now holds a majority proportion of ordinary shares in Chayora Holdings Limited.
Under the investment agreement, all land and property interests previously held under separate ownership structures will be integrated and become 100% owned by Chayora, which includes the land and first data centre building already completed on the 80 acre, 300MVA Tianjin campus that serves the greater Beijing area of 150 million population.
“The close working relationship we have developed with the Actis team is valued and we are very pleased to have concluded agreement for the significant commitment being made to Chayora in this funding round,” said Oliver Jones, CEO, Chayora.
“For Actis and Chayora, this underlines our strategic and long-term plan to create a leading data centre business in China to support market access by the world’s leading online services businesses.
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“Data volumes continue to grow in exponential terms and in China, as the world’s largest online market, the levels of technical innovation in AI, ML and related applications in responding to end user demands, means being in China offers huge potential to global sector leaders.
“The effort and commitment to securing a trade agreement promises even greater opportunities for prospective customers and Chayora will now move forward to ensure world-class data centre environments with Chayora as a trusted counterparty are available to meet demand.
“This will be from smaller requirements through to hyperscale: from global Fortune 500 companies to new, well-funded new entrants and innovators wanting to be part of the next wave of Cloud and ICT innovation in China.”
The capital will support the acquisition of further land in Tianjin campus expansion and also the first land plots for the planned Chayora Shanghai area campus in neighbouring provinces.
Chayora is also launching its first colocation data halls designed to Tier III concurrently maintainable international standards.
The colocation facility will be managed in partnership with a colocation operator which the company have not named.
“We are very excited to extend our partnership with Chayora and to support its next phase of expansion and growth with this Series C round of funding,” said Brian Chinappi, Partner and Head of Asia Real Estate of Actis.
“With a focused approach to develop world-class standard data centre campuses in China, Chayora has amassed all the essential ingredients in a challenging regulatory environment to be a one-stop data centre infrastructure solution provider.
“We look forward to working closely with Chayora’s founders and management team to make it one of the preferred data centre partners for both domestic and international internet and cloud players in China.”
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