Sep 14, 2020

Bain Capital-backed Chindata Group files for $400mn IPO

Data Centres
Harry Menear
2 min
Image Courtesy of Chindata Group
The Chinese hyperscale data centre startup is rumoured to be heading for a $400mn IPO on the Nasdaq...

Chinese data centre startup Chindata Group has filed the paperwork for its upcoming initial public offering (IPO). The company, which is backed by US investment firm Bain Capital, is rumoured to be looking to raise around $400mn from the move.  

The number of American depositary shares (ADS) to be offered, and their pricing, have yet to be determined. The company has announced, however, that the shares will be listed on the Nasdaq under the ticker CD. 

Bain Capital has owned a 57% controlling stake in the company since May, 2019, which it acquired for $570mn from Wangsu Science and Technology. 

Chindata is currently valued at around $3bn, following its latest round of funding in August. The company owns and operates one of the largest networks of carrier-neutral hyperscale data centres in China and across emerging markets in APAC. 

The company operates via two subsidiary brands: Chindata and Bridge Data Centres. Chindata operates “hyper-density IT cluster infrastructure” in and around Beijing, as well as throughout the Yangtze River Delta Area and the Greater Bay Area. These locations represent some of the major economic hubs for the Chinese market, and are one of the country’s major hubs of private equity investment in the data centre industry

Bridge Data Centres owns and operates data centre facilities across Malaysia and India, and is currently involved in expanding its operations to other emerging Asian markets.

The company operates one of the largest data centres in Cyberjaya, Malaysia, as well as six other facilities in China. 

The data centre market in Asia is booming. India’s data centre market capacity is expected to triple by 2025 and, according to a recent report by by Cushman & Wakefield, total data centre investment volume in the APAC region was 7.2 times higher in the last two years than between 2015 and 2017, for a total spend of around US$5.7bn. While a staggering 54% of all data centre investment in APAC in the first half of this year was focused on Hong Kong, ongoing political turmoil has begun to prompt investors to explore other markets in the region.

“We are the leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets in terms of capacity in service as of December 31, 2019,” Chindata said in its prospectus, citing figures from Frost & Sullivan.

Chindata’s prospectus also revealed that the majority of its revenue during H1, 2020 came from gaming company and TikTok owner ByteDance, which reportedly accounted for 68.2% of Chindata’s total earnings last year and 81.6% during the first shelf of 2020. 

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Jun 15, 2021

LCL acquires ENGIE Solutions data centre in Gembloux

2 min
LCL acquires the ENGIE solutions data centre in Gembloux in Belgium, the new facility being the company’s first in Wallonia

The data centre company LCL has announced today that it has acquired the ENGIE solutions data centre in Gembloux, Belgium through the acquisition of Cofely data solutions. The new facility, called Wallonia One, is the company’s first facility in Wallonia. As part of the agreement, LCL will take over the management of the facility’s employees as well as the data centre itself. The value of the acquisition is undisclosed. 

LCL says that Wallonia One is its fifth data centre in the Belgian market and its second acquisition, after purchasing the Atos data centre in Huizingen in April last year. Laurens van Reijen, CEO of LCL, said: “With this fifth data centre, we are increasing our presence on the market. Gembloux is located in the heart of the Walloon economy. As a result, LCL Wallonia One offers excellent connection possibilities for the business sites and parks throughout Wallonia. 

“Thanks to our other strategic sites located in the four corners of the Brussels and Antwerp peripheries, we can ensure that any company will have close links with other regions in our country”, van Reijen said. 

Four employees under a fixed contract with Cofely Data Solutions will be joining the LCL team for the acquisition. Remaining part of the LCL Wallonia One, the employees will be under the leadership of their current manager, Nicolas Coppée, LCL said. 

“We warmly welcome our four new colleagues and their support will be effectively integrated,” said Laurens van Reijen. “LCL is still strongly driven by service and quality. We intend not only to build synergies between our five data centres but also to introduce some innovations. Our current team of 37 employees is specialised in data centre services. So this is a win-win-win operation: for the customers of data centres, for ENGIE Solutions, and for LCL”. 

Wallonia One’s “solar park”

LCL also says that the Wallonia One data centre features a solar park to provide power for the facility. The park includes 2,000 photovoltaic panels which generate 1MW of electricity, LCL claims. The centre also has a low Power Usage Effectiveness (PUE) rating of 1.25, in line with the company’s sustainability and efficiency objectives. 

Committed to making all of its data centres carbon-neutral by 2030, LCL has created the “Climate Neutral Data Centre Pact” across Europe, which consists of 24 companies and 17 associations. 

In addition to Wallonia One, LCL and ENGIE Solutions have also concluded a collaboration agreement, thus enabling ENGIE Solutions to build new data centres for LCL. There are also plans for ENGIE Solutions to advise LCL on energy efficiency, given ENGIE’s experience in such projects.


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