VNET Group, Inc.a leading carrier- and cloud-neutral Internet data center services provider in China, announced that it has signed a master joint venture investment agreement (the “Master Agreement”) with a sovereign wealth fund (the “Partner”) to form joint ventures (the “JVs”) to pursue development and investment opportunities in multiple build-to-suit hyperscale data center projects in China.
Pursuant to the Master Agreement, VNET will establish individual project companies to undertake the development of each data center. Upon completion of the development of each data center, VNET will transfer 49% equity interest in each project company subject to certain conditions. VNET will hold the remaining 51% 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 Partner in respect of the investments under the Master Agreement are expected to reach RMB 5 billion.
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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.”
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