Century Huatong bought out 50.1% Stake of a Data Centre Project in Shenzhen
Recently, Zhejiang Century Huatong Group Co., Ltd. announced that it acquired 50.1% equity of Shenzhen "Yifeng Technology Guangming 5G Data Centre". Located in Guangming District, Shenzhen with 12,000 planned cabinets, the data centre is expected to be put in use in March 2022. Since the second half of 2021, Century Huatong has been continuing to expand operation of super large-scale (more than 10,000 cabinets) data centres across all regions in China. This acquisition marked a key milestone in the expansion.
Previously, the State Council issued the "14th Five Year Plan for the Development of Digital Economy” (hereinafter referred to as the "Plan"), which proposed that by 2025, China's digital economy will further expand with related industrial output contributing to 10% of national GDP compared to 7.8% in 2020. The Plan also deploys several key goals including optimizing and upgrading digital infrastructure. In recent years, internet companies as the key users, have actively participated the development process via self-development, colocation, acquisition and leasing. Additionally, real estate developers and domestic and foreign investment institutions are attracted to the fast-growing sector. In 2021 alone, several en-bloc transactions had been recorded, including Baoneng Chuangzhan acquiring five data centers of Dr. Peng, Capitaland acquiring one data center in Minhang District, Shanghai, and Keppel buying one data center in Jiangmen, Guangdong Province. Driven by the favorbble policy and booming market demand, data center is entering fast development stage, and the asset value is expected to increase steadily.