Bain Capital is looking to sell the China business of data centre operator WinTriX DC Group in a deal that could exceed $4 billion, according to two sources familiar with the matter. The U.S. investment firm has enlisted advisers who have held preliminary discussions with potential buyers in recent months. The sources declined to be named as the information is not public.
The China unit of WinTriX, previously known as Chindata Group Holdings, is projected to have 2025 EBITDA of nearly 4 billion yuan, the sources said. Bain Capital and WinTriX have not responded to requests for comment.
This potential deal comes nearly two years after Bain Capital took Nasdaq-listed Chindata private in a $3.16 billion transaction. Bain first acquired Chindata in 2019 and merged it with Southeast Asia-based Bridge Data Centres the same year, forming the listed entity. Post-acquisition, the firm separated the businesses again under the WinTriX name, a third source noted.
The move comes amid soaring data centre valuations, largely driven by advancements in artificial intelligence. For instance, Australian data centre firm AirTrunk was acquired by a Blackstone-led group last year at more than 20 times its projected core earnings.
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By comparison, WinTriX’s Chinese rival GDS Holdings is currently trading at a price-to-earnings ratio of 8.48 times, according to LSEG data. However, in February, Fitch Ratings downgraded WinTriX’s long-term foreign- and local-currency issuer default ratings from “BBB” to “BB”, citing increased business risks due to its strategic pivot towards overseas investment, slower hyperscale demand, and intensified competition in China.
WinTriX’s largest customer is ByteDance, which accounted for 86% of its 2022 revenue, per Fitch. Outside China, the firm also operates data centres in India and Malaysia. Its Bridge Data Centres unit secured $2.8 billion in bank financing in March for expansion, and Bain will retain control of that arm for now.
