The China data centre business owned by Bain Capital’s Chindata Group Holdings Ltd. has drawn interest from local bidders seeking to expand in the sector to tap a boom in artificial intelligence, according to people familiar with the matter.
Range Intelligent Computing Technology Group Co., a Chinese data centre services provider that’s considering a second listing in Hong Kong, is among firms that have recently submitted binding bids for the assets, the people said, asking not to be identified because the deliberations are private.
A transaction could value Chindata’s China business at about 30 billion yuan (US$4.2 billion or $5.39 billion), the people said. ByteDance Ltd., the Chinese owner of TikTok, is a key client of the firm’s data centres in China.
Other contenders vying for the assets include Guangdong HEC Technology Holding Co., Youzu Interactive Co., state-backed investment firm Beijing Capital Group Co. and Inesa Group Co., a Shanghai state-owned firm providing smart city solutions for urban infrastructure and sustainability, the people said.
Bloomberg News reported in March last year that Bain had been considering a deal for Chindata’s Chinese data centre assets after the private equity firm took Chindata private in a deal worth about US$3.2 billion in 2023.
Deliberations are ongoing and no final decisions have been made, the people said. A representative for Bain declined to comment, while Range Intelligent, Guangdong HEC, Youzu, Beijing Capital, and Inesa didn’t immediately respond to requests seeking comment.
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Once a niche investment, digital infrastructure is becoming a popular target for investors looking for stable returns and strong growth prospects as the world becomes increasingly reliant on AI in day-to-day life. Recent deals include Meta Platforms Inc.’s US$14.3 billion investment in Scale AI, while Big Tech firms like Amazon.com Inc., Microsoft Corp. and Google have all struck deals with prominent AI startups.
Founded in 2015, Chindata runs data centres in China’s major economic powerhouses including Beijing, the Yangtze River Delta around Shanghai and Greater Bay Area in the country’s south. Chindata also has operations in India and Malaysia, its website shows.
Range Intelligent was listed in Shenzhen in 2015 and has a market capitalisation of about US$13.4 billion. The company, which is based just south of Beijing, used to operate in the packaging industry before shifting to data centres.
Guangdong HEC Technology trades in Shanghai with a market capitalisation of about US$8.8 billion. The company supplies aluminium capacitors and electrode foils that are used in AI systems and data centre computers, according to its interim report. Shanghai-based Youzu Interactive has a market capitalisation of about US$2.2 billion. The company develops and distributes mobile and internet games, according to its website.
