GDS Holdings, Inc. has announced that Alibaba signed a pre-commitment to lease the entirety of the GDS Beijing 3 data center, currently under construction.
When the GDS Beijing 3 data center is completed, it will have 4,260 square meters of IT space which is now 100% leased by Alibaba. The facility is expected to be completed in the first half of 2018.
The Beijing 3 data center is adjacent to the existing GDS Beijing 1 facility, which is already leased in part by Alibaba. William Huang, Chairman and CEO of GDS Holdings, said that taking on the new space adjacent to the existing data center is ideal for Alibaba to expand to meet growing capacity requirements, and is a testament to the quality of service already provided by GDS.
“With the enormous demand created by China’s rapid cloud adoption, now more than ever, our clients depend on us to provide a steady supply of high-performance data center resources to fulfill their requirements,” he said. “Winning a follow-on order of this size from a customer like Alibaba is testament to our ability to continuously source the right projects in key markets and to provide the high operating standards which our customers demand. We are proud to be the partner of choice for Alibaba as we continue to grow and develop China’s Cloud market together.”
This announcement follows one made earlier this month, at which time GDS and Alibaba announced that they had signed a memorandum of understanding (MoU). The MoU recognized GDS as the preferred data center provider for Alibaba Group in China, and outlined a commitment by GDS to support Alibaba’s cloud development plan by providing customized resources and services at the highest standard.
The companies agreed together to cooperate in the development of technological advances in data center design and operations, which are intended to support the data center industry in China as a whole.
GDS released first quarter results for 2017 that showed a 65% increase in net revenues over 2016, with a 58.2% increase in revenue generating space year over year. The company website notes plans for ten additional data centers, although locations of those facilities and time frames to completion have not yet been disclosed.