How did GDS manage to significantly reduce operating expenses in Q4 2024?

GDS Holdings Ltd. managed to significantly reduce operating expenses in Q4 2024 due to several strategic initiatives and favorable market conditions: 1. **Revenue Growth**: The company's revenue rose by 5.2% to CNY2.69 billion compared to the same quarter last year, which contributed to the improved financial performance. 2. **Efficient Operations**: GDS likely implemented cost-effective operations strategies, reducing overhead costs while maintaining productivity. This could include optimizing resource allocation, improving energy efficiency, and leveraging economies of scale from its expanded data center footprint. 3. **Strategic Investments**: The company's strategic investments in international data centers, including the $1.2 billion Series B funding round, may have enhanced its operational efficiency and reduced costs in the long term. These investments could have provided economies of scale and better bargaining power with suppliers. 4. **Market Conditions**: The overall positive data industry outlook in China, with ambitious growth targets set by governmental bodies, likely created a favorable environment for GDS to operate. This could have led to better pricing power and reduced costs due to increased demand and competition. In summary, GDS's ability to reduce operating expenses in Q4 2024 can be attributed to a combination of revenue growth, efficient operations, strategic investments, and favorable market conditions.