Bain Sells Data Centres for $4 Billion to HEC-Led Group

Shenzhen Dongyangguang Industry Co. has agreed to purchase Bain Capital’s data centres in China for approximately $4 billion.

In a statement released on Wednesday, Shenzhen Dongyangguang, the parent company of Guangdong HEC Technology Holding Co., which is listed on the Shanghai Stock Exchange, is spearheading a group of institutional investors, including insurers and local government funds, that are purchasing WinTrix DC Group’s China assets. Chindata Group Holdings Ltd. was the previous name of WinTrix.

In the statement, Jonathan Zhu, partner and chair of China at Bain Capital, said, “Chindata has developed into one of China’s leading digital infrastructure platforms, with unmatched scale and technical capabilities.” In the statement also “HEC will keep building on this legacy by supporting the next stage of Chindata’s development with its robust industrial capabilities.”

In order to purchase the assets, Guangdong HEC and its affiliated company would invest 3.5 billion yuan ($491 million) and 4 billion yuan, respectively, in a joint venture, an additional press release said. Following the cash funding, Guangdong HEC will own roughly 46.7% of the joint venture, which it stated would have a “certain impact” on its commercial operations.

The state-backed investment firm Beijing Capital Group Co., gaming company Youzu Interactive Co., data centre services provider Range Intelligent Computing Technology Group Co., and Inesa Group Co. were among the bids that Guangdong HEC was up against, according to a late August Bloomberg News story.

Earlier today, Thursday the shares of Guangdong HEC increased by about 9%, thereby increasing the company’s market capitalisation to $11 billion and its gain for the year to 131%. According to its interim report, Guangdong HEC provides electrode foils and aluminium capacitors used in data centre computers and artificial intelligence systems.

One of Chindata’s major customers in China is ByteDance Ltd., the Chinese company that owns TikTok.

As the world grows more dependent on artificial intelligence (AI) in daily life, investors seeking steady returns and development are increasingly targeting digital infrastructure.

Chindata was established in 2015 and operates data centres in strategic locations such as Beijing, the Yangtze River Delta, and the Greater Bay Area in the southern part of the nation. According to its website, Chindata also operates in Malaysia and India. Chinadata was first purchased by Bain in 2019, and in 2023, a take-private agreement was finalised.

“Bain Capital’s approach of collaborating with exceptional management teams to create infrastructure platforms that define whole categories which is a reflection in Chindata’s path. With an outstanding size and technological technological skills, Chindata has developed into one of China’s top digital infrastructure platforms today. Jonathan Zhu, a Partner and Chair of China at Bain Capital, stated, “We think HEC will carry on this tradition by contributing its robust industrial capabilities to support the next stage of Chindata’s development.”

For HEC to expand the integrated computer network and take part in this national goal, this acquisition is a crucial step. Following completion, stability and continuity will be its topmost priorities. This will create a cooperative ecosystem — from green power to AI and operations — by fusing HEC’s liquid-cooling strengths with Chindata’s capabilities. We will also provide hyperscale, intelligent, and sustainable computing infrastructure as the cornerstone of the digital economy, stated Zhang Yushuai, Chairman of HEC Group.