In the fast-evolving era of digital transformation, China’s first batch of data center public REITs (Real Estate Investment Trusts) has sparked unprecedented investor enthusiasm. On July 3, 2025, Southern Runze Tech Data Center REIT (Fund Code: 180901) announced the successful completion of its pricing inquiry, achieving a staggering 167.06 times oversubscription—a clear signal of strong market confidence in digital infrastructure assets. The fund is set to launch its public offering on July 14, priced at 4.5 yuan per unit, with a total issuance of 1 billion units, aiming to raise approximately 4.5 billion yuan in gross proceeds.
This milestone reflects not just a financial success but a strategic shift in capital allocation toward next-generation digital infrastructure. As the backbone of the digital economy, data centers are increasingly recognized for their stable cash flows, long-term growth potential, and alignment with national technological and environmental goals.
Why Digital Infrastructure Is Drawing Massive Capital Inflows
Data centers serve as the foundational pillars of modern digital ecosystems—supporting cloud computing, artificial intelligence, big data analytics, and 5G networks. With China accelerating its digital economy strategy, demand for high-performance computing and secure data storage has surged.
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The Southern Runze Tech Data Center REIT is anchored by a high-quality underlying asset: the Langfang A-18 Data Center, operated by Runze Intelligent Computing Technology Group Co., Ltd. (hereafter "Runze Tech"). This facility houses 5,897 server cabinets, including:
- 5,794 standard cabinets (7.04kW each)
- 100 high-power cabinets (16.5kW)
- 3 ultra-high-power cabinets (30.36kW)
With a total power capacity exceeding 42 megawatts, the center delivers robust performance and scalability, catering to enterprise-grade clients requiring high-density computing solutions.
Strategic Allocation and Investor Confidence
The fund's offering structure includes three investor tiers:
- Strategic placement: 700 million units (70% of total), including 340 million units allocated to the original sponsor or its affiliates.
- Institutional placement: 210 million units (21%), with over 96% of institutional bidders submitting top-tier bids—a rare level of consensus in capital markets.
- Public offering: 90 million units (9%), available to individual investors starting July 14.
The overwhelming participation from institutional investors—accounting for 91% of total subscriptions—highlights professional capital’s long-term conviction in digital infrastructure as a resilient asset class.
Policy Tailwinds Accelerating Digital Infrastructure Growth
Government support has played a pivotal role in fueling this momentum. Recent policy initiatives underscore a coordinated national strategy to promote innovation-driven infrastructure financing:
- In February 2025, the China Securities Regulatory Commission (CSRC) released guidelines supporting REITs for AI, data centers, smart cities, and tech innovation parks.
- In May, the Ministry of Industry and Information Technology (MIIT) launched the Computing Power Interconnection Action Plan, targeting nationwide standardized computing resource integration by 2028.
- At the 2025 Lujiazui Financial Forum, CSRC Chairman Wu Qing emphasized expanding asset-backed financing through data assets and intellectual property, further validating the REIT model for tech infrastructure.
These measures collectively create a favorable ecosystem for digital infrastructure REITs, enabling companies like Runze Tech to monetize existing assets while reinvesting in new developments.
Funding Reinvestment and National Expansion
Runze Tech plans to use net proceeds primarily for the construction of the Chongqing Runze (Southwest) International Information Port, a key project aimed at enhancing digital connectivity in the Chengdu-Chongqing economic corridor. This aligns with China’s broader “East Data West Compute” strategy, which seeks to optimize data processing distribution across regions.
To date, Runze Tech has established seven AIDC (Artificial Intelligence Data Center) clusters across six major regions, covering core economic zones such as:
- Beijing-Tianjin-Hebei
- Yangtze River Delta
- Greater Bay Area
This nationwide footprint positions the company as a leader in intelligent computing infrastructure, capable of supporting large-scale AI training and enterprise digitalization.
Market Implications: The Rise of the “Digital Infrastructure +” Ecosystem
According to Hu Qimu, Deputy Director of the Strategic Emerging Industries Research Center at Tsinghua University, the successful launch of Southern Runze Tech Data Center REIT marks a turning point for China’s public REITs market. It demonstrates that projects combining technological advantage, operational stability, and policy alignment can attract deep capital interest.
Moreover, Lin Xianping, Secretary-General of the Cultural Innovation Research Institute at Zhejiang University City College, noted that REITs offer a sustainable financing mechanism for data centers. They enable faster capital recycling, improve asset turnover, and encourage greener operations—key factors in achieving carbon neutrality goals.
As more high-quality digital infrastructure assets enter the REIT pipeline, experts predict the emergence of a vibrant “Digital Infrastructure +” ecosystem, where capital markets and technological progress reinforce each other.
Frequently Asked Questions (FAQ)
Q: What is a data center REIT?
A: A data center REIT is a publicly traded fund that owns and operates income-generating data center properties. Investors buy shares in the fund to gain exposure to stable cash flows from leasing server space to enterprises and cloud providers.
Q: Why did Southern Runze Tech Data Center REIT receive such high demand?
A: The combination of a premium underlying asset, strong policy support, proven tenant demand, and attractive yield potential drove exceptional investor interest. The 167.06x oversubscription reflects confidence in both the sponsor and the long-term viability of digital infrastructure.
Q: How does this REIT contribute to green development?
A: Modern data centers like Langfang A-18 are designed with energy efficiency in mind. Proceeds from the REIT will also fund next-gen facilities incorporating advanced cooling systems and renewable energy integration, supporting low-carbon growth.
Q: Can individual investors participate?
A: Yes. While 91% of units were allocated to strategic and institutional investors, 9% (90 million units) are reserved for public subscription starting July 14, 2025.
Q: What are the risks associated with investing in digital infrastructure REITs?
A: Key risks include technological obsolescence, rising energy costs, regulatory changes, and tenant concentration. However, well-managed REITs mitigate these through diversified client bases, long-term contracts, and proactive facility upgrades.
Q: What is the expected impact on China’s digital economy?
A: By unlocking capital for new projects, REITs accelerate the deployment of critical digital infrastructure, enhancing national computing capacity and supporting AI, smart cities, and industrial digitization.
Looking Ahead: A New Era for Infrastructure Investment
The record-breaking subscription for Southern Runze Tech Data Center REIT is more than a one-off event—it’s a harbinger of structural change in how infrastructure is financed and valued. As digital assets gain recognition on par with traditional physical infrastructure, public markets are opening new pathways for inclusive investment in the digital future.
With continued innovation and regulatory support, digital infrastructure REITs are poised to become a cornerstone of China’s capital markets—and a model others may follow globally.
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