XJ, CITIC Construction and Itochu Jointly Set up IDC Industrial Investment Fund

XJ Capital    Company News    XJ, CITIC Construction and Itochu Jointly Set up IDC Industrial Investment Fund

Photo: XJ Holding, CITIC Construction and Itochu Sign IDC Industrial Fund Strategic Cooperation Memorandum

 

Xinjin Investment Holding Co., Ltd. (hereinafter referred to as "XJ"), CITIC Construction Co., Ltd. (hereinafter referred to as "CITIC Construction"), and Japan's Itochu Corporation (hereinafter referred to as "Itochu") signed a memorandum of cooperation in Beijing on 14 January 2019. They plan to jointly initiate the establishment of a US dollar fund aimed at investing in data center infrastructure in China.

 

Internet Data Center (IDC) is the core carrier for centralized data processing, exchange and storage. As a key information infrastructure in the digital economy era, it has become an important support for the development of strategic emerging industries such as big data, cloud computing, Internet of Things, 5G, etc. With the popularization of smart phones in China, IT services such as video transmission services and video chat supported by network broadband and server processing capabilities are developing rapidly. In the future, driven by 5G and Internet of Things technology, a large number of devices will be connected to the Internet, and data traffic will show exponential growth, further driving the strong demand for IDC.

 

At present, the overall supply of IDC is insufficient, and the demand prospect of IDC in the future will further widen the supply and demand gap of IDC. From 2010 to 2017, data traffic increased about 60 times, while IDC's number of computer rooms increased only about 9 times. IDC's market size is about US$ 53.4 billion; Among them, China's IDC market is about 13.7 billion US dollars, accounting for a quarter of the global market share, with a vast market space.

 

XJ and Itochu, CITIC Construction and Strategic Partner, will give full play to their respective advantages and raise a total of US$ 3 billion of funds for Chinese and foreign investors in response to China's strong IDC demand, with a first phase of US$ 500 million of funds. The fund will invest in the infrastructure of data centers in China to provide a series of infrastructure structures for data center operators. We will build an IDC infrastructure platform that includes the engineering development of IDC infrastructure, fund raising, and REIT's eventual listing.

 

Yoshida Bonshi, Executive Director of Itochu, Dr. Hu Bin, Managing Partner of XJ, and Chen Xiaojia, Chairman of CITIC Construction attended the signing ceremony and delivered speeches. Representatives of all parties signed the cooperation document. After the signing ceremony, Wang Jiong, vice chairman and general manager of CITIC Group, met with Yoshida and his party. The two sides reviewed the development process of cooperation between CITIC and Itochu, exchanged key directions of strategic transformation between the two sides, and discussed further strengthening business cooperation in new economic fields such as the Internet, medical care and artificial intelligence in the future.

 

 

 

2019-01-16 00:00