Global investors Singapore Technologies Telemedia (ST Telemedia) and GDS Services (GDS), a major carrier-neutral data center service provider in China, have partnered to further expand and develop GDS' portfolio of data centers.

With the partnership, ST Telemedia has agreed to invest an approximate 40% stake into GDS.

ST Telemedia’s executive director Sio Tat Hiang said ST Telemedia’s investment is at an opportune time as China’s data center market, particularly in the top tier, carrier-neutral segment, is experiencing tremendous growth.

"ST Telemedia intends to leverage its expertise to become a globally recognized owner, operator and investor in the data center sector,” Sio said.

“The GDS partnership is an ideal platform allowing us to participate in the high growth Chinese data center market."

GDS’ president and CEO William Huang said by partnering with ST Telemedia, GDS now has the financial flexibility and strength to rapidly and significantly expand its portfolio of next-generation data centers and thereby solidifying its market position in China.

“This strategic investment will enhance our ability to support existing customers in their local and international growth aspirations, while raising our business profile among global enterprises in China,” Huang said.

GDS operates 17 high-availability data centers in major cities across China, including Beijing, Shanghai, Chengdu, Shenzhen and Hong Kong, serving major national and international financial institutions, large enterprises, government agencies, and top-tier internet companies.

Current shareholders of GDS include SB China Venture Capital (SBCVC) as lead investor, International Finance Corporation (IFC) and a subsidiary of China Everbright Limited (Everbright).

ST Telemedia once invested in major data center players including Equinix and Savvis (now known as CenturyLink Technology Solutions).

Currently, ST Telemedia's portfolio company, Level 3 Communications, owns and operates over 350 carrier-neutral data center facilities throughout North America, Latin America and Europe.