China's GDS Holdings Ltd is seeking $1 billion in investment in its international data center unit.

Based in Singapore, GDS International is looking to expand its operations in Southeast Asia, Bloomberg reports citing people familiar with the matter.

GDS is reportedly working with an advisor to gauge interest from global investors. Should the investment go ahead, GDS will be left with a minority stake.

In March of this year, GDS raised $587 million for its international data center unit. This was announced just days after the company confirmed that it was looking to sell a stake in the unit.

As of the end of 2023, GDS had provided $595m of inter-company funding to GDSI, comprising approximately $411m of paid-up share capital and $184m of shareholder loans and other payables.

Following the March funding round, GDS held 56.1 percent of the equity interest of GDS International. This new potential funding round would reduce that stake significantly.

The remaining 43.9 percent is currently held by investors including Hillhouse, Rava Partners, Boyu, Princeville Capital, and Tekne Capital.

GDS was founded in 2006 and operates dozens of data centers across Greater China, including in Suzhou Kunshan, Chengdu, Shanghai, Shenzhen, and Beijing.

Its international unit, GDS International, was established in 2022 and currently operates in Hong Kong, Singapore, Malaysia, and Indonesia. The company says its portfolio comprises 330MW of data center capacity in service and under construction and a further 340MW held for future development.

In April 2024, the company partnered with real estate private equity firm Gaw Capital to expand into Japan with a 40MW data center in Fuchu City, Tokyo.