GDS Holdings Q2 2025: Unpacking Contradictions in Customer Balance, AI Demand, and Asset Monetization Strategy

Balance of international and domestic customers, DayOne's Client Mix and AI Demand, Asset Monetization Strategy and Timeline, DayOne IPO Timeline, AI Demand and Customer Mix are the key contradictions discussed in GDS Holdings Limited's latest 2025Q2 earnings call.



Strong Financial Performance:
- GDS Holdings reported a 12.4% increase in revenue and an 11.2% increase in adjusted EBITDA year-on-year for Q2 2025.
- The growth was driven by an increase in total area utilized and the successful monetization of assets through ABS and C-REIT transactions.

Asset Monetization and Capital Structure:
- GDS raised $676 million through the issue of convertible bonds and equity in the international capital market.
- The company achieved a significant milestone with the successful completion of its C-REIT IPO, further enhancing its holdco balance sheet and providing access to China equity capital markets on advantageous terms.

AI Demand and Strategy:
- Gross move-in during Q2 '25 was around 20,000 square meters, driven by a 152 megawatts order, with utilization rate reaching 77.5%.
- The company is positioning itself for AI-driven demand by preparing developable capacity and access to capital, expecting a wave of AI demand mainly for inferencing.

DayOne Expansion and Financing:
- DayOne added 246 megawatts of new commitments in Q2 '25, bringing its total commitments over 780 megawatts.
- DayOne's success is driving a potential Series C equity raise and consideration for a broader public offering within 18 months, with an initial focus on Finland and Southeast Asia.