Company Reports

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

GDS lifted its fiscal 2026 revenue growth guidance to 12.4% midpoint from 10.6% previously and raised adjusted EBITDA growth to 11% from 8.7% previously. Fiscal 2026 capital expenditure guidance has also been lifted to CNY 10 billion from CNY 9 billion previously.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

GDS reported solid first-quarter results, with revenue up 23% and adjusted EBITDA up 47%. Excluding one-time items and adjusted for developed asset sales, pro forma revenue and EBITDA grew 12%-13%.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

GDS reported solid fourth-quarter results with revenue up 8.6% and adjusted EBITDA up 5.2%. New 2026 revenue and adjusted EBITDA growth guidance of 10.7% and 8.7% was provided, with capital expenditure planned to surge 91% to CNY 9 billion in 2026.

GDS reported decent third-quarter results with revenue up 10.2% and adjusted EBITDA up 11.4%. 2025 revenue and adjusted EBITDA growth guidance of 10.9% and 8.5% was retained, but management estimated that EBITDA would likely be "at or above" the top end of the guidance.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows, it can more easily cater to the demand from its key cloud service provider customers, allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. The most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. Management has indicated that an IPO of this business is a possibility within the next 18 months. In July 2025, GDS listed a C-REIT seeded by some of GDS' mature Chinese data centers and will likely continue to use this as a means for recycling capital.

GDS reported decent first-quarter results with revenue up 12% and adjusted EBITDA up 11%. 2025 revenue and adjusted EBITDA growth guidance of 10.9% and 8.5% was retained despite the deconsolidation of the C-REIT assets from end-July.

GDS reported decent first-quarter results with underlying revenue up 12% and adjusted EBITDA up 16%. The deconsolidation of the international business, now named "DayOne," at the end of 2024 means the remaining consolidated business is focused on China.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 38% and has now deconsolidated this business. Note the most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. We believe an IPO of this business is a possibility within the next 18 months. The creation of a listed REIT seeded by some of GDS' mature Chinese data centers is also being considered.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia, but in raising funds for the growth of this business, named DayOne, it has sold down its stake to 37.6% and has now deconsolidated this business. Note the most recent capital raise would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. An IPO of this business is a possibility within the next 18 months. The creation of a listed REIT seeded by some of GDS' mature Chinese data centers is also being considered.

GDS' fourth quarter showed underlying revenue rose 22% and adjusted EBITDA grew 24%. The deconsolidation of the international business, now named DayOne, at the end of 2024 means the remaining consolidated business is focused on China.

GDS reported its third-quarter results and raised its 2024 capital expenditure guidance to CNY 11 billion from CNY 6.5 billion, which we believe indicates the company's increased confidence in the data center market.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia. The company has completed several equity funding deals for its international business, raising USD 1.7 billion and leaving GDS with a 37.6% stake in it on a postclosing and as-converted basis. This would value GDS' stake at USD 1.3 billion or USD 6.75 per ADR on a USD 400 million investment. An IPO of this business is a possibility down the track. The creation of a listed REIT seeded by some of GDS' mature Chinese data centers is also being considered.

No-moat GDS announced strong second-quarter results in both its China-focused GDSH business and its international-focused GDSI business. GDSH is focused on steadily increasing its EBITDA and reaching cash flow breakeven through increasing the utilization of existing data centers by signing new business with fast move-in rates and that do not require much capital expenditure. In the first half, the company managed to increase the gross area utilized by 37,097 square meters, which is a pace faster than any of the previous four years. It also brought an additional 46,002 sqm into service, which is higher than the previous two years. Net revenue for the China business rose 8.9% year on year, while adjusted EBITDA increased by 4.3%. The EBITDA margin for GDSH fell 210 basis points to 47.8% because of increased power tariffs introduced in the second half of 2023. GDSI is focused on growth and added a whopping 206 megawatts of new orders to bring total IT power committed to 388 MW. Management also indicated that most of these new orders would be converted to revenue within 24 months.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia. The company has completed an equity funding deal for its international business, raising USD 672 million for 47.3% of the business from private equity investors. Management has not ruled out further private equity capital raises for the international business and an IPO of this business is also a possibility down the track. The creation of a listed REIT seeded by some of GDS' mature Chinese data centers is also being considered.

We expect GDS Holdings to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. The company is also excited about its international expansion into Southeast Asia. The company has announced an equity funding deal for its international business, raising USD 672 million for 47.3% of the business from private equity investors. Management has not ruled out further private equity capital raises for the international business and an IPO of this business is also a possibility down the track.