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DBS: Chindata Group Holdings Ltd – BUY TP US$10.20

News Alert: Development of data centres in Qingyang, Gansu in the next 3-5 years

What’s New

– Local news reported on 22 Feb 2022 that Chindata will develop data centres with 150MW IT capacity in Qingyang, Gansu in the next 3-5 years.

– Chinese government recently approved to build 8 national computing hubs with 10 national IDC clusters under the “East Data Computing in West” plan and Qingyang, Gansu is identified as one of the IDC cluster locations.

– News links: https://www.sohu.com/a/524557909_120684009

Our View:

– The development of additional data centres in Qingyang, Gansu is positive for Chindata in the long-term.

– 150MW IT capacity represents c.20% addition to Chindata’s current total planned IT capacity of 700MW by 2023.

– We currently rate BUY on the counter; TP of US$10.2.

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