Gaw Capital Partners has just announced the establishment of a joint-venture partnership with Centrin Data for hyperscale data center projects in China.

Hong Kong-based Gaw Capital Partners is a real estate private equity firm which will now have a fund under its management to join data center firm Centrin Data for the acquisition, development and operation of a portfolio of hyperscale projects in China.

As announced, Centrin will focus on site sourcing, IDC (Internet Data Center) design, leasing and operation, as well as customer service for clients, including government entities, conglomerates and internet companies.

On the other hand, Gaw Capital will provide its expertise on investment underwriting and transaction structuring, project development and management, project financing, corporate governance and capital markets to support future operations.

“Gaw Capital Partners is extremely pleased to form a JV partnership with Centrin Data, one of the first and most successful data center operators in China,” said Humbert Pang, Managing Principal and Head of China for Gaw Capital Partners.

“We are delighted to be investing in this exceptional investment opportunity, given that China’s total internet traffic growth rate is expected to grow exponentially in the coming years due to the launch of 5G. The launch of the new data center fund reflects our confidence in data center assets in China.”

The venture’s first project will be the expansion of a data center located in Huaqiao, part of Kunshan, Jiangsu, which is 40km away from Shanghai’s city center. The data center is directly linked to Shanghai’s “National Level” Internet exchange point.

The Huaqiao data center is currently operational with 6,400 data center racks, which is occupied by a top-tier Internet company. The expansion phase is now planned to increase the facility to feature 25,600 racks across a gross floor area of 300,000 square meters (3,230,000 square feet).

In addition to the Huaqiao facility, Centrin also manages data centers in Beijing; Wuhan, Hubei Province; and Yantai, Shandong Province. In total, the four facilities host over 20,000 operational data center racks with a further 55,000 racks under development.