AtHub Could Reap USD347 Million From Alibaba Data Center Deal
Xu Wei
/SOURCE : yicai
AtHub Could Reap USD347 Million From Alibaba Data Center Deal

(Yicai Global) Dec. 2 -- Shanghai AtHub, a leading provider of customized data center services in China, could land CNY2.44 billion (USD347 million) in service fees from a proposed collaboration with Alibaba Group Holding.

Tech giant Alibaba recently approached the company to build HB41, HB33, GH13, JN13 data centers in China, Shanghai-based AtHub said today. The data centers must be completed within 18 months, a long construction period, though no start date has been decided.

The project would not have a significant impact on the firm's performance this year. But earnings generated will be confirmed by installment over a 10-year service period based on delivery dates and progress, the statement said.

AtHub has not completed a feasibility study nor an evaluation, and can only carry out the project after it is approved by the board and shareholders. No contract has been signed yet. The project would require up-front capital investment, which may put added pressure on the company because of its business model.

AtHub's shares [SHA:603881] fell almost 2 percent today to close at CNY35.78 (USD5.10) each.

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Keywords: Shanghai AtHub Co. , Alibaba