AI Boom Fuels $5.6 Billion Data Center Bain Capital, Vantage Deals Across China And Malaysia

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Soaring demand for AI and cloud computing applications has driven at least $5.6 billion in data center deals across Asia Pacific this week, as global tech giants from Amazon to Google expand.

Boston-based private equity firm Bain Capital said Wednesday it has agreed to sell a portfolio of data center facilities in China (held by WinTrix DC Group) to a consortium led by Shenzhen Dongyangguang Industry for $4 billion. At the same time, Singapore’s state-linked investment firm GIC and the Abu Dhabi Investment Authority (ADIA) are investing $1.6 billion into Vantage Data Centers, which is backed by New York-listed DigitalBridge Group.

WinTrix DC Group (formerly known as Chindata Group Holdings) counts Tiktok owner ByteDance among its customers in China, where it operates several data centers in Beijing, the Yangtze River Delta, and the Greater Bay Area. It also has presence in India and Malaysia.

“Chindata has evolved into one of China’s leading digital infrastructure platforms, with unmatched scale and technical capabilities,” Jonathan Zhu, a partner and chair of China at Bain Capital said in a statement.

Separately, Vantage Data Centers said the fresh capital from GIC and ADIA will support the company’s acquisition of Yondr Group’s data centers with a combined capacity of over 300 megawatts in the Sedenak Tech Park, one of the booming digital infrastructure hubs in the southern Malaysian state of Johor, near Singapore. Following the acquisition, Vantage will have 1 gigawatts of capacity across the Asia Pacific.

“With the support of GIC and ADIA, we are positioned as one of the largest providers of sustainable AI and cloud digital infrastructure in the region,” Jeremy Deutsch, president for Asia Pacific at Vantage Data Centers, said.

Data center transactions across Asia Pacific have surged in recent months. Amazon said earlier this month it will invest NZ$7.5 billion ($4.4 billion) to expand its cloud computing infrastructure in New Zealand. Last month, Reliance Industries—led by billionaire Mukesh Ambani, Asia’s richest person—unveiled plans to build a gigawatt-scale data center in the western Indian state of Gujarat, while at the same time partnering with Google and Facebook parent Meta Platforms to develop AI applications.

“The sheer volume of new projects in the region highlights just how important the region has become in the global digital infrastructure landscape,” Fred Fitzalan Howard, head of data centers in the Asia Pacific, for London-based property consultancy Knight Frank, said in a statement. He notes U.S. tech giants Amazon, Google, Meta and Microsoft are investing more than $160 billion this year to scale up their digital infrastructure across the region.