Chayora’s institutional investor is to remain the majority shareholder in the business as plans for wide-range expansion across China surface as a result of the partnership and new cash boost.
Founder and Editor, The Tech Capital
December 20, 2021 | 1:55 PM GMT
The partnership with Chayora will provide EdgeConneX with data centre offerings in Beijing and Shanghai, two of the largest markets in China, along with the ability to scale out Chayora’s platform to other major markets throughout mainland China.
No financial details have been disclosed, however, executives said the “sum was substantial”.
Randy Brouckman, CEO of EdgeConneX, said: “Over the last ten years, EdgeConneX built out its global data centre platform by working with our customers to give them the data centre capacity where they want it, when they want it and at the scale they want it.
“As our customers look for solutions in the APAC region, it’s vital that we include a data centre presence and team in China. The investment in Chayora provides EdgeConneX customers with an ideal data centre partner that can support their digital infrastructure requirements in China. At the same time, the EdgeConneX global platform can support Chinese firms that have international requirements.”
The Tech Capital sits down with Randy Brouckman, CEO of EdgeConneX, and Oliver Jones, CEO of Chayora Holdings, to discuss the deal in more detail and what it means to both businesses as well as the Chinese marketplace.
EdgeConneX’s investment in Chayora follows on from an earlier cash injection by institutional investment firm Actis, who will remain as the major shareholder in the company post the initial completion of the transaction.
Thomas Liu, Partner of Actis, commented: “We are delighted for Chayora to establish this strategic partnership with EdgeConneX through the investment. As a global sustainable infrastructure investor with a long history of investing in China, we look forward to working closely with the EdgeConneX team to jointly support Chayora’s endeavour in expanding and growing its business in the China data centre market.”
In a data centre market that is forecast to triple in size by 2025, Chayora has an existing hyperscale, carrier-neutral data centre campus serving Beijing and a new campus in Shanghai that is under development.
The facilities across the two campuses can jointly scale to over 200MW IT load with access to 100% renewable energy, and Chayora also has the ability to expand into other leading Chinese markets.
Also commenting, Oliver Jones, CEO of Chayora Holdings, added: “China represents the largest and one of the most challenging markets for global digital infrastructure users and through the team we have built in Chayora, we can address all demands, to any scale for the world’s largest data centre customers.
“We are therefore delighted to bring EdgeConneX in alongside our existing institutional investment partner Actis as the global reach and recognition of the EdgeConneX track record and approach will help accelerate our expansion. We are also excited by the investment deal we have agreed in terms of assured capital availability at ‘China-scale’ to suit the characteristics of our principal market.”
Citi acted as exclusive financial advisor to Chayora in connection with the transaction.
EdgeConneX operates today from over 50 markets and has in 2021 entered new regions including Asia (India), the Middle East with the acquisition of Israeli provider Global Data Center (GDC).
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