GLP Pte is considering raising fresh funds to help further expand its data center operations in China.
Bloomberg reports the Singapore-based investment manager is planning to raise about $500 million from investors in exchange for a minority stake in the platform. Any deal could value the company's data center business at around $4-5 billion.
Founded in 2009, GLP is a global investment manager in logistics, digital infrastructure, and related technologies. The company claims that its assets, including those under construction, will deliver about 1,400 megawatts of IT capacity upon completion.
The company doesn’t have a complete list of its facilities on its site, but in November it completed the first 150,000 sqm (1.6 million sq ft) phase of development at its GLP Changshu Southeast Data Centre in Jiangsu Province. At full build-out, the facility is targeted to provide more than 120MW and more than 300,000 servers worth of capacity.
The company was also previously reported as developing the GLP Huailai Internet Data Centre in Hebei, Northern China. The company said it had invested RMB 10 billion ($1.5 billion) in the facility, with the first phase of development providing 4,000 cabinets accommodating up to 60,000 servers. When fully built out, the data center will offer more than 15,000 cabinets and 200,000 servers.
Last year, GLP said that it had built "a competitive data infrastructure business" after investing in Chinese data centers from 2018. "GLP’s data center business is focused on the core, backbone nodes of Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Greater Bay Area."
A sponsored article in Pere magazine claimed GLP had built a team of 200 to develop data centers, hiring from companies like Alibaba, Tencent, and Baidu. In 2019, GLP acquired a 60 percent stake in local data center company Cloud-Tripod.
Chinese cloud & data center firm GDS Holdings was reportedly interested in acquiring GLP last year for up to $10 billion. But the talks have reportedly stalled over valuation disagreements.
Chinese data center developer Hotwon Group is also reportedly looking to raise about $300 million in fresh funding to help fuel expansion across the country in a deal that could value it at around $1.5 billion.