Chindata Group said on Wednesday that investor Bain Capital has offered to take the Chinese data center operator private in a deal valuing the company at $2.93 billion.

Chindata’s shares, which have lost more than a fifth of their value this year, rose about 16% to $7.29 in trading before the bell.

Bain Capital’s proposal values each American depositary share of Chindata at $8, representing a premium of more than 27% to its last closing price.

The private equity firm already owns a 42.2% stake in Chindata, according to Bain Capital.

Data centers and cloud services have seen increased demand due to the widespread adoption of AI technologies.

However, analysts expect enterprise customers to optimize their expenditure on cloud services.

Chindata’s services include designing and operating data centers in China, India and Southeast Asia.

Reuters