China: VNET to form JV with Sovereign Wealth Fund to develop hyperscale data centers in China

VNET, formerly known as 21Vianet, has launched a joint venture with an unrevealed sovereign wealth fund to build and operate hyperscale data centers in China. The agreement will see VNET create individual project companies that will develop each data center. Upon completing the data centers, VNET will transfer a 49% stake in the facilities to each project company. On the other hand, VNET will hold the remaining 51% stake in the companies while also providing operating and management services to all the joint ventures.

The investments from the unnamed sovereign wealth fund and VNET is expected to reach RMB 5 billion ($785.6 million). The CEO of VNET, Samuel Shen, said the company is happy to join forces with the sovereign wealth fund to create joint ventures for developing and operating hyperscale data centers in China. He added that China continues to see an increase in demand for hyperscale data centers, and the joint venture will help meet these demands. VNET currently operates 59 partnered facilities and 36 self-built facilities in over 30 cities in China.