GDS Holdings Ltd (NASDAQ: GDS)

GDS Holdings Ltd is a leading developer and operator of high-performance data centers in China. The company designs, builds, and operates facilities that provide colocation and managed services to a broad range of customers. Its data centers are characterized by large net floor area, high power density, high power efficiency, and multiple redundancy across critical systems. As of December 31, 2025, the company reported an aggregate net floor area of 668,283 square meters in service, with 93.0% committed by customers and 75.5% utilized. Additionally, 73,994 square meters were under construction, of which 66.1% were pre‑committed. GDS Holdings Ltd also holds a minority equity interest in DayOne, a Singapore‑headquartered data center platform, which contributes to shareholder value through the equity method.

Revenue is generated primarily from leasing data center space and providing related services. Customers pay for the use of net floor area, power capacity, and optional managed services such as business continuity, network management, security, and cloud connectivity. The company offers both colocation services, where clients house their own equipment, and managed services, which include hosting, storage, and cloud access solutions. Long‑term service agreements, typically ranging from one to ten years, provide predictable cash flows, and revenue is recognized as services are rendered. Net revenue grew from RMB9,782.4 million in 2023 to RMB10,322.1 million in 2024, representing an increase of 5.5%, and rose to RMB11,432.3 million (US$1,634.8 million) in 2025, an increase of 10.8% over the prior year. Adjusted EBITDA increased from RMB4,733.0 million in 2023 to RMB4,876.4 million in 2024 and reached RMB5,403.5 million (US$772.7 million) in 2025.

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GDS Holdings Ltd holds a strong position in the Chinese data center market as one of the first movers in developing high‑performance facilities. It competes with domestic carrier‑neutral providers, international entrants, and the state‑owned telecommunications carriers China Telecom, China Unicom, and China Mobile. Competitive advantages include an extensive footprint across established and new growth markets, advanced design capabilities that deliver low power usage effectiveness, and deep relationships with hyperscale cloud service providers and large internet companies. The company’s self‑developed capacity features an average power density of approximately 2.34 kW per square meter and a power usage effectiveness of around 1.23 for facilities commissioned after 2020 with high utilization. Furthermore, GDS Holdings Ltd controls an estimated 3.7 gigawatts of developable resources for future expansion. Its carrier‑neutral stance allows customers to connect to multiple telecom networks and major public clouds within its facilities.

The customer base consists of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. As of the end of 2025, the company served 989 customers, many of which are leaders in their respective industries. The two largest customers accounted for 37.9% and 11.8% of total area committed, respectively, while no other customer exceeded 10% of committed area. The tenant mix includes the largest public cloud platforms operating in mainland China, and the company’s services support a wide array of digital transformation initiatives across sectors.