Data Center Operator GDS to Raise $620 Million as Government Reveals Growth Plans for Sector

Money-losing data center operator GDS Holdings Ltd. is looking to raise $620 million to fund its expansion, a move that comes shortly after the Chinese government announced plans to massively expand the country’s data processing infrastructure.

The money will be raised through a private placement, with the Hong Kong-listed company planning to sell convertible senior notes to a group of big-name institutional investors including Sequoia China Infrastructure Fund, ST Telemedia Global Data Centers and an unnamed Asian sovereign wealth fund, GDS said in an exchange filing on Tuesday. Due in 2029, the notes carry an interest rate of 0.25%.