VNET Surges 2.71% on 40MW Data Center Order, AI Infrastructure Boom

VNET Group (VNET) surged 2.71% on Tuesday, extending its winning streak to five consecutive days with a cumulative gain of 24.21%. The stock reached its highest intraday level since September 2025, climbing 6.26% during the session, signaling renewed investor confidence in the company’s strategic direction.

The rally follows VNET’s securing of a 40MW wholesale order for its Gu’an IDC Campus, a major data center project near Beijing. This contract with a leading internet firm underscores the company’s role in supporting AI and high-performance computing demand, positioning it to benefit from China’s expanding digital infrastructure needs. Concurrently, the rollout of the Hyperscale 2.0 Framework has enhanced operational efficiency and scalability, reinforcing VNET’s competitive edge in a rapidly evolving market.

Institutional investors have bolstered their stakes in VNET, with entities like Deutsche Bank AG and Vanguard Group increasing holdings, reflecting optimism about long-term growth. A $50 million share repurchase program, announced by the company, has further signaled management’s confidence in its valuation and financial stability. These buybacks aim to reduce outstanding shares, potentially boosting earnings per share and supporting stock price momentum.

Market sentiment is also shaped by the broader AI infrastructure boom, with VNET well-positioned to capitalize on surging demand for computational resources. Strategic partnerships with tech giants and participation in industry events have amplified visibility, though analysts remain divided on valuation metrics. While some models suggest the stock is undervalued, others highlight risks tied to high debt levels and reliance on AI-driven revenue streams.

Regulatory tailwinds, including reforms in China’s REIT market, have enhanced sector-wide liquidity and investor appeal for infrastructure-focused firms like VNET. However, short-term volatility persists, with recent price swings influenced by quarterly earnings outcomes and macroeconomic shifts. Investors are advised to monitor debt management strategies and refinancing prospects as the company balances growth ambitions with financial prudence.