Hillhouse, Boyu Said to Eye Stake in GDS’s SE Asia Data Centers

Alternative asset managers Hillhouse Capital, Boyu Capitaland CDH Investmentsare in advanced talks to invest in GDS Holdings Ltd.’s data center business outside China, according to people familiar with the situation.

An agreement on a total investment of $500 million to $600 million may be reached as soon as the coming weeks, though no final decisions have been made, the people said, asking not to be identified because the matter is private. Other investors could also be involved in a deal, they said.

Shanghai-based GDS is expanding in Southeast Asia and has been contemplating selling a minority ...