GDS buys Shanghai site for $200m to build data centre campus

GDS Holdings' SH1 data centre

GDS Holdings Limited (NASDAQ: GDS) has entered into a definitive legal agreement through its subsidiary in China to acquire a data centre site from a third party for around $200m (¥1.37bn).

The 212,000 sqm site is half developed and half greenfield, and it will be used for a new data centre campus, which the company intends to develop in multiple phases over several years.

The site is located around 25 kilometres from the company’s existing cluster of 11 data centres in the Shanghai Waigaoqiao Free Trade Zone.

“Shanghai is a high-priority location for our customers, and we’re excited to be expanding and strengthening our footprint in this extremely desirable and resource constrained Tier-1 market,” stated William Huang, Chairman and Chief Executive Officer of GDS,

“We already have strong customer demand in-hand, and are confident that Phase 1 will sell out quickly.

“The acquisition of additional land in Shanghai coupled with the strong support of the local government when it comes to the digital economy, will enable us to meet the region’s growth in cloud adoption and need for low-latency infrastructure.”


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By acquiring the site, the company will have long term security of tenure and control over the design and phasing of the development, according to GDS.

For Phase 1, the company plans to convert two existing industrial buildings into data centres, yielding a total net floor area of approximately 22,600sqm.

The company revealed that the construction will soon commence, and is expected to be completed in early 2021.

Access to power has been obtained for Phase 1, while the development of subsequent phases will be contingent upon obtaining additional power capacity.

GDS disclosed that it had entered into a binding memorandum of understanding with a third party to acquire certain buildings which form part of the site, back in December 2019.

Subsequent to this disclosure, the acquisition was restructured to include additional buildings and greenfield land held under the same title.

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