GDS Holdings Ltd. has secured $1 billion from mainly new US investors to expand its international data center operations outside mainland China. The funding round, led by Coatue Management with significant support from Baupost Group, is directed towards GDS’s affiliate, DigitalLand Holdings Ltd. (also known as GDS International or GDSI), as confirmed by an Oct. 29 statement.
The fundraising aligns with earlier reports by Bloomberg News in August and highlights GDS’s strategic push to grow its footprint abroad. Established in 2022 and headquartered in Singapore, GDSI currently has a 480-megawatt data center capacity in operation or under construction, with an additional 590 MW planned for development in key locations like Hong Kong, Singapore, and Batam, Indonesia.
GDS retains a 37.6% ownership in GDSI and is looking to secure an additional $2.3 billion in loans to fund its Malaysian operations. Bloomberg has also reported that the company may consider an initial public offering (IPO) for its international unit as soon as 2024.