EdgeConnex to access China data center market via Chayora investment

EdgeConnex to access China data center market via Chayora investment

By Philbert Shih, Managing Director and Founder of Structure Research

EdgeConneX made a strategic investment in China-based data center operator Chayora. Chayora has wholesale data centers in Tianjin (which is outside Beijing) and Shanghai, where an expansion of an existing facility is underway. The move will allow China-based Chayora customers to access ready-made international data center inventory across EdgeConneX’s 50 locations around the world.

Chayora has raised $253M to date. Actis will remain Chayora’s majority investor after this transaction is closed.

“As our customers look for solutions in the APAC region, it’s vital that we include a data center presence and team in China,” said Randy Brouckman, CEO of EdgeConneX in a prepared statement.

“The investment in Chayora provides EdgeConneX customers with an ideal data center 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,” with support for everything from hyperlocal to hyperscale deployments, he added.

Chayora estimates total capacity in Tianjin and Shanghai to be able to surpass 200MW.

The EdgeConneX expansion into China follows a recent partnership to expand into India.  There, the company partnered with India’s Adani Enterprises (part of the Adani Group) and established a 50-50 joint venture named AdaniConneX for developing and operating data centers throughout India.

Analysis

The Chinese hyperscale community would be a high priority segment and this relationship should position EdgeConneX to more easily access that demand. EdgeConneX also has a customer base looking at expanding into multiple APAC markets and China is one of the most challenging to enter. This investment makes that process much easier. Upon formation, Chayora’s larger strategic goal was to not just build data centers, but also make the process of setting up infrastructure in China faster and more efficient from a regulatory, business and operations perspective. EdgeConneX’s customer base and global reach will now put that play in full motion.

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