Bain Capital is moving closer to a potential agreement to take Chindata Group Holdings Ltd. private, people familiar with the matter said, a deal that would allow the buyout firm to take full ownership of the data center business.

Negotiations between Bain and US-listed Chindata’s special board committee, which is evaluating the buyout firm’s June offer of $8 per American depositary share, are now focused on determining a valuation, the people said. Bain has already secured financing to buy out minority shareholders and an agreement could be reached as early as this month, they said.

China Merchants Capital Holdings International Ltd.’s non-binding offer of $9.20 in cash per ADS, valuing the company at about $3.4 billion, is unlikely to be accepted, the people said. Bain may consider increasing the proposed offer price if needed to seal a deal, the people said.

Bain already owns about 42.2% of Beijing-based Chindata, representing 87.4% of the company’s total voting power. Chindata shares are mostly flat this year, valuing the company at about $2.9 billion.

No final decisions have been made, talks are still ongoing and could still face delays, the people said. A representative for Bain declined to comment, while Chindata didn’t respond to requests for comment.

Data centers have become hot assets among investors, in part due to the perception of their having stable returns, and expectations of ongoing growth as people increasingly rely on technology.

Chindata operates carrier-neutral data centers in locations including China, India and Malaysia, according to its website. Bain bought Chindata in 2019 from Wangsu Science & Technology Co. and merged it with its portfolio firm Bridge Data Centers. In 2020, Chindata raised $621 million through its US initial public offering.

--With assistance from Dong Cao.