VNET Group (VNET.US) saw its stock soar 5.32% in Tuesday's trading session, building on the momentum from a 6.34% pre-market surge. The significant uptick comes in the wake of a bullish research report from CITIC Securities, highlighting the company's robust growth prospects in the data center industry.
According to the report, VNET Group, a leading IDC enterprise in China, has set ambitious plans to expand its total managed data center capacity to 10GW by 2036. The company is also actively deploying green power direct connections, a move expected to boost profits. As newly constructed IDCs are gradually delivered and AI computing demand drives improved customer rack utilization rates, analysts anticipate continued performance growth for VNET Group.
CITIC Securities also shed light on VNET Group's impressive capital expenditure projections for 2025, estimated at 10-12 billion yuan, representing a year-over-year increase of 101%-141%. This substantial investment is expected to result in a planned delivery volume exceeding the combined total of the previous three years. Additionally, the rack utilization rate of the company's delivered IDCs has shown rapid improvement, with performance accelerating in the first half of 2025. These factors collectively contribute to the positive sentiment surrounding VNET Group's stock, driving the significant price movement observed in the market.
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