GDS, a developer and operator of “high-performance” data centers in China, has entered into an agreement (a non-binding Letter of Intent – ‘LoI’) with State Development Investment Corporation (SDIC), China Unicom, and China Telecom for the joint development of data centers in selected upcoming markets in China.
The partners will prioritize an initial data center pilot project in the Tianjin market. Details of the cooperation arrangements contemplated by the LoI are subject to further definitive legal agreement by the four parties.
“We are honored to participate in this LoI with these leading state-owned enterprises,” said Mr. William Huang, Chairman and Chief Executive Officer (CEO) of GDS. “As the only private sector company in the consortium, our participation evidences the expertise and market leadership we’ve established over our 17-year operating history. This partnership combines GDS strengths in data center design, construction, operations and customer service with the complementary capabilities, resources and relationships of the other parties. As we realize synergies together, we look forward to working alongside our distinguished partners to explore potential opportunities within the government and state-owned enterprise segments and to further strengthen our brand and market leading position.”
The LoI would reflect the shared view of the four parties that the growth of the digital economy in China is creating unfilled demand for “high standard, large-scale” data center infrastructure and services in selected upcoming markets beyond the core markets where GDS is currently operating.
The signing ceremony in Beijing was attended by Mr. Huisheng Wang, Chairman of SDIC, Mr. Xiaochu Wang, Chairman of China Unicom, Mr. Jie Yang, Chairman of China Telecom, and Mr. William Huang, Chairman of GDS.