- ST Telemedia invests a 40% stake into GDS
Singapore and Shanghai, 30 July 2014 - Singapore Technologies Telemedia (ST Telemedia), a strategic investor focused on communications, media and technology business globally, and GDS Services (GDS), a leading provider of high-availability data centre services in China, today announced their partnership to further expand and develop GDS' portfolio of data centres. Underpinning the partnership, ST Telemedia has agreed to invest an approximate 40% stake into GDS.
GDS has established an outstanding track record over 10 years of providing IT managed services, hosting services, and cloud computing infrastructure to customers with business-critical IT operations in China. It serves major national and international financial institutions, large enterprises, government agencies, and top-tier internet companies. GDS operates 17 high-availability data centres in primary economic hubs across China, including Beijing, Shanghai, Chengdu, Shenzhen and Hong Kong. Current shareholders of GDS include SB China Venture Capital (SBCVC) as lead investor, International Finance Corporation (IFC) and a subsidiary of China Everbright Limited (Everbright).
The partnership with ST Telemedia will support GDS' strategy to be the leading next-generation data centre company in China, and accelerate the development of advanced new data centres in key locations.
Commenting on the investment, ST Telemedias Executive Director Mr Sio Tat Hiang said, ST Telemedias investment is at an opportune time as Chinas data centre market, particularly in the top tier, carrier-neutral segment, is experiencing tremendous growth. We are excited at the opportunity to participate in this dynamic growth with a well established partner. The combination of ST Telemedias deep experience and expertise in the global data centre sector and GDS impressive operating track record will create a compelling proposition for the Company and its customers. We look forward to working with GDS' management team and current shareholders to support the Company's growth opportunities.
GDS and our current shareholders are delighted to welcome ST Telemedia as a strategic partner. ST Telemedia is a strong and experienced investor with a solid track record. With the transaction announced today, GDS now has the financial flexibility and strength to rapidly and significantly expand our portfolio of next-generation data centres and thereby solidifying our market position in China. This strategic investment will enhance our ability to support existing customers in their local and international growth aspirations, while raising our business profile among global enterprises in China, said Mr William Huang, GDS President and CEO.
ST Telemedia has extensive experience in the data centre sector, with historical investments in Equinix and Savvis (now known as CenturyLink Technology Solutions). Currently, ST Telemedia's portfolio company, Level 3 Communications, owns and operates over 350 carrier-neutral data centre facilities throughout North America, Latin America and Europe. ST Telemedia is looking to actively expand its data centre business globally to support high-growth blue chip customer needs.
"ST Telemedia intends to leverage its expertise to become a globally recognised owner, operator and investor in the data centre sector. The GDS partnership is an ideal platform allowing us to participate in the high growth Chinese data centre market," said Mr Sio.