Blackstone Makes a $250m Investment In Vnet

Chinese data center firm Vnet has announced that Blackstone has invested $250 million in the firm. Blackstone bought $250 million worth of convertible notes in Vnet. According to Vnet, it will be using the funds to develop and expand in China. The founder and executive Chairman of Vnet, Josh Chen, said the company had seen an increase in the growth of its data center footprint and demand in tier-1 cities across China over the last two years. He added that Blackstone’s investment would help provide the needed funds to exploit the unending pipeline of development projects that will support Vnet’s enterprise and hyperscale customers. Chen finally added that the company is excited and looks forward to a sustained partnership with Blackstone.

Earlier in June 2020, Blackstone invested $150 million in Vnet. A senior managing director in the Tactical Opportunities Group of Blackstone, Jasvinder Khaira, said Vnet had become a force to reckon with in the Chinese data center market under Josh Chen’s leadership. He added that Blackstone has a 100% belief that Vnet has a major role in developing China’s new digital infrastructure. The $250 million convertible notes have a 2% interest per annum, with a term of five years. Vnet operates 30 data centers in China.