Chinese data center firm GDS has acquired a property in Singapore from CapitaLand and aims to convert it into a data center.
CapitaLand Ascendas REIT Management Limited, manager of CapitaLand Ascendas REIT, this week announced the latter’s trustee HSBC Institutional Trust Services (Singapore) Limited has entered into a sale and purchase agreement for the sale of 21 Jalan Buroh in Singapore.
The property was sold to GDS IDC Services Pte. Ltd. for S$112.8 million (US$86.3m). The deal is expected to close in Q4 2024.
21 Jalan Buroh is a three-story warehouse with a seven-story ancillary office block. The Property has a total gross floor area of 39,980 sqm (430,340 sq ft) and a remaining land lease tenure of about 31 years.
Temasek-owned CapitaLand originally acquired the property in June 2005 for S$58.4 million (US$44.6m).
In its own announcement, GDS said the purchase follows the company being awarded new data center capacity by Singapore’s Infocomm Media Development Authority (IMDA) and Economic Development Board (EDB), under the Pilot Data Centre Call for Application (DC-CFA) initiative announced last year.
GDS – along with Equinix, Microsoft, and AirTrunk – were granted a combined 80MW of capacity for new facilities in Singapore as the city-state looks to end a years-long moratorium on new developments.
GDS said the site offers potential for future capacity scaling. The first phase is targeted to be operational around Q4 2026 – though specifications weren’t shared.
Jamie Khoo, CEO of GDS International, said: “This land acquisition is a major milestone as we continue our strategy to expand in key markets like Singapore. The capacity allocation underscores our commitment to supporting the country’s digital economy while prioritizing energy efficiency and sustainability. Singapore’s leadership in digital innovation strengthens GDS International’s ability to serve global customers from this vital location.”
GDS was founded in 2006 and operates dozens of data centers across Greater China, including in Suzhou Kunshan, Chengdu, Shanghai, Shenzhen, and Beijing.
Its international unit, GDS International, was established in 2022 and currently operates in Hong Kong, Singapore, Malaysia, and Indonesia. The company previously said its portfolio comprises 330MW of data center capacity in service and under construction and a further 340MW held for future development.
In April 2024, the company partnered with real estate private equity firm Gaw Capital to expand into Japan with a 40MW data center in Fuchu City, Tokyo, and confirmed earlier this year it was in talks to potentially sell a stake in its international business. STT GDC is a major investor in the company.
Hillhouse is also an existing investor in GDS.
