TLDR: Bain Capital has sold its entire stake in the China operations of WinTrix DC Group, formerly Chindata Group, to a consortium led by Shenzhen Dongyangguang Industry Co. (HEC Group) for approximately US$4 billion. This landmark transaction, announced around September 10-11, 2025, marks the largest M&A deal in China’s data center industry history. Chindata is a major hyperscale data center provider, with ByteDance as a key client, while HEC Group, a manufacturer of AI system components, is strategically expanding into digital infrastructure to capitalize on the growing demand for AI computing power.
Global private investment firm Bain Capital has announced the strategic sale of its entire equity interest in the China operations of WinTrix DC Group, previously known as Chindata Group, to a consortium spearheaded by Shenzhen Dongyangguang Industry Co., Ltd (HEC Group). The deal, valued at approximately US$4 billion, was finalized around September 10-11, 2025, and is being hailed as the largest merger and acquisition transaction in the history of China’s data center industry. The buying consortium includes a mix of institutional investors, insurance companies, and local government funds.
Chindata Group has established itself as a leading hyperscale data center platform in China since 2018. It operates critical IT cluster infrastructure across China’s major economic hubs, including the Greater Beijing Area, the Yangtze River Delta Area, and the Greater Bay Area. The company is a crucial service provider for some of China’s largest digital platforms, notably ByteDance, the parent company of TikTok. While the sale focuses on its China operations, Chindata also maintains an international presence in India and Malaysia.
HEC Group, the parent company of Shanghai-listed Guangdong HEC Technology Holding Co., is a prominent manufacturer of components vital for AI systems and servers, such as capacitors and electrode foils. This acquisition represents a significant strategic pivot for HEC, allowing it to vertically integrate into digital infrastructure and directly participate in the burgeoning AI boom. Guangdong HEC and a related party are set to inject a combined 7.5 billion yuan (approximately US$1 billion) into a joint venture for the purchase, with Guangdong HEC holding roughly 46.7% of the newly formed entity.
Jonathan Zhu, a Partner and Chair of China at Bain Capital, commented on the transaction, stating, “Chindata’s journey reflects Bain Capital’s strategy of partnering with outstanding management teams to build category-defining infrastructure platforms. Today, Chindata has evolved into one of China’s leading digital infrastructure platforms, with unmatched scale and technical capabilities. We believe HEC will continue to build on this legacy, bringing its strong industrial capabilities to support the next phase of Chindata’s development.” Drew Chen, another Partner at Bain Capital, added, “This exit underscores Bain Capital’s track record of creating long-term value and supporting AI-driven innovation and sustainable growth. We are confident that under HEC’s leadership, the company will continue to thrive in China’s dynamic data economy.”
Wu Huapeng, CEO of Chindata, highlighted the synergistic potential: “By combining Chindata’s leadership in advanced cooling technologies with HEC’s expertise in liquid-cooling materials and precision manufacturing, we will drive a new model of power–compute synergy and set new benchmarks for sustainable development. Together, we will reinforce Chindata’s position as a leading player in the national ‘Eastern Data, Western Computing’ initiative and unlock broader opportunities across the AI industry value chain.” Zhang Yushuai, Chairman of HEC Group, echoed this sentiment, stating, “This acquisition is a key step for HEC to participate in this national strategy and advance the integrated computing network. After completion, we will prioritize continuity and stability. By combining HEC’s strengths in liquid-cooling with Chindata’s capabilities, we will build a collaborative ecosystem — from green power to AI and operations — and deliver hyperscale, intelligent, and sustainable computing infrastructure as a foundation of the digital economy.”
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The deal underscores the sustained investor demand for scalable, next-generation digital infrastructure in China, particularly as artificial intelligence continues to drive an exponential increase in demand for data capacity and computing power. The market has responded positively to HEC’s strategic move, with its stock surging 113% year-to-date, bringing its market capitalization to approximately $10.2 billion.
