VNET Closes Strategic Investment as CATL-Linked Buyers Take 38.1% Stake

VNET Group, Inc. (Nasdaq: VNET), a leading carrier- and cloud-neutral internet data center services provider in China, has completed a previously announced strategic investment that significantly reshapes its shareholder base. The transaction closed on September 21, 2026, marking a major capital markets event for one of China's most prominent data center operators.

The deal involved the purchase by PJ Millennium I Limited and PJ Millennium II Limited of an aggregate of 650,424,192 Class A ordinary shares from Success Flow International Investment Limited and Choice Faith Group Holdings Limited. Both buyers are wholly owned subsidiaries of PJ Millennium Limited Partnership, whose general partner is Lochpine BG I GP Limited, a wholly owned subsidiary of Lochpine Capital Limited. Lochpine Capital Limited is a non-controlled, non-consolidated affiliate of Contemporary Amperex Technology Co., Limited, the Chinese battery giant listed under stock codes 300750.SZ and 03750.HK.

Following the closing, the buyers collectively hold approximately 38.1% of VNET's total issued and outstanding ordinary shares, based on 1,708,970,760 ordinary shares outstanding as of June 30, 2026. The transaction also triggered the effectiveness of an investor rights agreement between VNET and the buyers, alongside a voting and consortium agreement among the buyers, Josh Sheng Chen, VNET's Founder and Executive Chairperson, and certain of his affiliated investment vehicles.

The scale of the stake — exceeding one-third of VNET's equity — signals a deepening strategic alignment between China's data center infrastructure sector and the new energy industry. CATL's affiliate gaining a substantial position in a major IDC provider underscores the growing convergence of energy storage, power management, and digital infrastructure as data center operators seek more resilient and sustainable power solutions.

VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers spanning internet companies, government entities, blue-chip enterprises, and small- to mid-sized enterprises. The company provides IDC services, cloud services, and business VPN services designed to improve the reliability, security, and speed of its customers' internet infrastructure. The strategic investment is expected to strengthen VNET's capital position and support its expansion plans amid rising demand for data center capacity in China.