GDS Holdings Ltd (09698.HK), a leading data center operator in China, saw its stock price surge 6.17% in Tuesday's trading session, following the release of strong Q3 2025 financial results and positive outlook driven by artificial intelligence (AI) demand.
The company reported a 10.2% year-over-year increase in Q3 net revenue to RMB 2.8871 billion, with adjusted EBITDA growing 11.4% to RMB 1.3422 billion. GDS also maintained its full-year 2025 guidance, signaling confidence in its business trajectory. Investors were particularly encouraged by the company's strategic positioning in the booming AI infrastructure market, with CEO William Huang highlighting gigawatt-scale demand discussions and significant increases in new data center orders.
Adding to the positive sentiment, GDS showcased its financial innovation with the successful listing of China's first batch of data center REITs, raising approximately RMB 2.248 billion. The company's strong ESG performance, including 40% renewable energy usage and industry-leading power usage effectiveness, further solidifies its competitive edge in the evolving data center landscape. As GDS continues to capitalize on the AI-driven growth cycle and expand its AI computing infrastructure capabilities, investors appear optimistic about the company's future prospects in China's digital economy.
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