Hongyi Real Estate has made significant investments in two data center REITs, signaling its strategic focus on enhancing its presence in the rapidly growing data center sector in China.

Target Information

The deal involves investments in two prominent Real Estate Investment Trusts (REITs) focused on data centers, namely the Global Data Center REIT (stock code: 508060) and the Runze Technology Data Center REIT (stock code: 180901). These REITs recently made their debut on the Shanghai and Shenzhen Stock Exchanges. The investment signifies the ongoing strategic commitment of Hongyi Real Estate to enhance its presence in the data center sector, continuing from its previous holding of Global Data Center ABS.

Both REITs encompass significant data center projects located within critical hotspots of China's national computing network, especially in the Yangtze River Delta and Beijing-Tianjin-Hebei regions. The flagship assets include the Guojin Data Center in Kunshan, Jiangsu, which features two buildings with 4,192 server racks and a total power capacity of 29,044 kW; and the Runze International Information Port A-18 in Langfang, Hebei, offering 5,897 server racks and a power capacity of 42,531 kW.

Industry Overview

The data center industry in China is experiencing rapid growth, driven by the increasing demand for computing power and storage solutions. With the rise of cloud computing, artificial intelligence, and big data analytics, companies are in