Key Takeaways
VNET Group Inc. shares surged more than 24 percent after the data center operator announced a $942 million strategic investment from an affiliate of battery manufacturer Contemporary Amperex Technology Co.
"We are pleased to welcome our new strategic investors and greatly appreciate their strong support for VNET and our long-term vision," said Josh Sheng Chen, Founder and Executive Chairperson of VNET, in a statement. "Looking ahead, we will work closely with our strategic partners to deepen collaboration across technology and supply chains."
Two entities, PJ Millennium I and PJ Millennium II, will purchase up to 650.4 million Class A ordinary shares for $1.4486 per share, according to the announcement. The sellers are units of Shandong Hi-Speed Holdings Group. The transaction, which implies a price of $8.6914 per American depositary share, is expected to close in the fourth quarter of 2026, pending shareholder approval from Shandong Hi-Speed.
The deal gives the CATL-affiliated entity a stake of up to 38.1% in VNET, signaling a major push into the AI infrastructure space by industrial capital. The partnership aims to leverage CATL's supply chain expertise, particularly in power and energy storage, to build out next-generation AI data centers, a critical growth area for VNET as it competes with other Chinese cloud and data-hosting providers.
To ensure management stability, the buyers have entered into a voting and consortium agreement with founder Josh Sheng Chen. This arrangement ensures that shares acquired through the investment will be voted in accordance with instructions from the founder's party for a specified period, effectively keeping control with the current leadership despite the new investor's large stake.
The investment provides VNET with significant capital and a powerful strategic partner to compete in China's high-growth AI data center market. Investors will watch for the deal's final shareholder approval from Shandong Hi-Speed Holdings Group, expected before the Q4 2026 closing.
This article is for informational purposes only and does not constitute investment advice.
