GDS Holdings, a leading China data center developer and operator, reported steady growth in the second quarter of 2025, with revenue up 12.4% year-over-year to RMB2.9B (US$405M) and net losses narrowing to RMB70.6M (US$9.9M).
The company highlighted strong utilization gains, expansion of committed capacity, and the successful listing of its China REIT (C-REIT) as key milestones in Q2.
Q2 2025 Financial Highlights
- Revenue: RMB2.9B (US$405M), +12.4% YoY
- Adjusted EBITDA: RMB1.37B (US$191M), +11.2% YoY; margin 47.3%
- Net Loss: RMB70.6M (US$9.9M), significantly reduced from RMB231.8M a year ago
- Gross Profit: RMB689M (US$96M), +21.8% YoY; margin improved to 23.8%
Q2 2025 Operating Highlights
- Committed + Pre-committed Area: 664,000 sqm (+8.1% YoY)
- Utilized Area: 479,000 sqm (+14.1% YoY)
- Area in Service: 618,000 sqm (+6.5% YoY)
- Utilization Rate: 77.5% (up from 72.4% in Q2 2024)
Strategic Milestones
- C-REIT IPO: GDS launched its China REIT on the Shanghai Stock Exchange, unlocking RMB2.07B in net proceeds while retaining a 20% stake.
- Funding Flexibility: Raised US$676M through convertible notes and equity in Q2.
- Tier 1 Focus: Company reiterated commitment to Tier 1 China markets, citing AI-driven demand tailwinds.
Asia Cloud View – The Intel
GDS continues to prove its scale advantage in China’s data center sector, with stronger utilization and narrowing losses signaling operational discipline.
- Financial Turnaround: Net loss margin shrank to 2.4% from 9% last year.
- AI Tailwinds: Management cites AI evolution as a key driver of Tier 1 demand.
- Capital Efficiency: The C-REIT IPO provides a new financing channel, reducing reliance on debt while monetizing stabilized assets.
Against rivals like Chindata and VNET, GDS’s mix of REIT monetization, high utilization, and Tier 1 market dominance positions it to capture China’s AI-driven data center growth.