VNET Group (NASDAQ:VNET) signed a master joint venture investment agreement with a sovereign wealth fund to form joint ventures to pursue development and investment opportunities in multiple build-to-suit hyper-scale data center projects in China.
Per the terms, VNET will establish individual project companies to undertake the development of each data center.
Upon completion of the development of each data center, VNET will transfer 49% equity interest in each project company subject to certain conditions. VNET will hold the remaining 51% equity interest of each project company.
The company will also provide management and operating services to all the JVs.
The first targeted capital commitments from VNET and the Partner regarding the investments under the Master Agreement are expected to reach RMB 5 billion.