(Bloomberg) — Hotwon Group, a closely held Chinese data-center developer, is looking to raise about $300 million in fresh funding to help fuel expansion across the country, according to people familiar with the matter.
The private round may help boost Hotwon’s valuation to about $1.5 billion, the people said, asking not to be identified because the information is private. The company is working with financial advisers to sound out prospective investors, the people said.
Considerations are still ongoing, no final decision has been made and details such as the fundraising size could change, the people said. Representatives for Hotwon didn’t immediately respond to a request for comment.
Digital infrastructure assets such as data centers help support everything from video streaming to online gaming, both of which have surged in popularity during the pandemic. Other firms seeking to raise funds amid increasing investor demand include Singapore-based investment manager GLP Pte, which is considering raising about $500 million for its Chinese data centers in exchange for a minority stake in the platform, Bloomberg News has reported.
Chinese investment managers DCP Capital Partners and CPE co-led a $300 million equity investment round in Hotwon in 2020 to help fund the company’s pipeline of data centers in China, according to DCP’s website.
Hotwon was founded in 2015 as a cloud computing infrastructure provider focused on designing, building and operating data centers, according to a statement on DCP’s website. Its customers include other cloud, internet and financial firms as well as government enterprises.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
