VNET.US Reports 18.3% Revenue Growth, 26.4% EBITDA Increase in Q1 2025

In the first quarter of 2025, VNET.US, a leading digital infrastructure company and the first Chinese IDC company listed on the US stock market, released its unaudited financial results for the period. The company reported a total revenue of 2.25 billion yuan, marking an 18.3% year-on-year increase. The adjusted EBITDA grew by 26.4% to 682 million yuan, with the adjusted EBITDA margin increasing by 1.9 percentage points to 30.4%.

Chen Sheng, the founder and chairman of VNET Group, highlighted the company's strong performance driven by its dual-engine strategy. The base-type IDC business, in particular, saw significant growth. By the end of March 2025, the operating capacity of the base-type business increased by 88 megawatts to 573 megawatts, while the capacity put into operation grew by 23.9% to 437 megawatts, setting a new historical high with an additional 84 megawatts. New orders included a 6-megawatt base-type business order from an intelligent driving client and approximately 4 megawatts of city-type business orders from clients in the internet, finance, local life, intelligent driving, and gaming industries.

Wang Qiyu, the CFO of VNET Group, emphasized the company's robust performance in the first quarter, with both revenue and adjusted EBITDA exceeding expectations. The total revenue growth was primarily driven by an 86.5% year-on-year increase in the base-type IDC business, which reached 673 million yuan. The city-type IDC business also saw a 4.8% year-on-year increase in net revenue to 968 million yuan. The company's strong financial performance was further supported by its ability to secure diverse financing options, which helped lower financing costs and enhance overall financial stability.

VNET's base-type IDC business experienced strong growth, driven by the increasing demand for high-quality IDC services as domestic AI development entered a rapid growth phase. The company's city-type IDC business also maintained stable operations, with a slight increase in the utilization rate to 63.7% and a monthly revenue per cabinet of 8,898 yuan. To meet the growing demand for computing power and tap into the vast market potential, VNET continues to expand its resource layout in core cities and their surrounding areas. The company currently has eight data centers under construction, with plans to deliver 377 megawatts within the next 12 months. The pre-signed rate for the under-construction capacity remains stable at 81.6%.

VNET's focus on high-quality, high-margin businesses has enabled it to maintain a healthy profit margin. The company's strong performance in the first quarter was also supported by its ability to secure high-quality orders from various industries, including a 55-megawatt base-type business order from a leading cloud computing client and a 64-megawatt order from an internet client through a joint venture project. Additionally, VNET secured orders from clients in the intelligent driving, internet, finance, local life, and gaming industries, totaling approximately 129 megawatts for the quarter.

VNET has also made significant strides in optimizing its capital structure through diverse financing channels. In March 2025, the company issued 430 million US dollars in convertible senior notes due in 2030, with an interest rate of 2.5%. The issuance was well-received by high-quality investors, with nearly 50% of the issuance allocated to long-term investors. VNET also issued its first sustainability-linked syndicated loan, totaling 500 million yuan with an annual interest rate of 3.7%. The company's comprehensive financing cost for individual projects reached a new low, 55 basis points below the five-year LPR, at approximately 3.05%.

VNET's commitment to sustainable development was further highlighted in its fifth ESG report, released in April 2025. The report showcased the company's achievements and practices in responsible governance, innovation, green initiatives, and collaborative efforts. VNET's "Algorithmic-Electricity Coordination Near-Zero Carbon Data Center Demonstration Project," based on the Ulanqab Source Network Storage Integration Project, was selected for the national development and reform commission's 2025 list of green and low-carbon advanced technology demonstration projects. The project aims to achieve a PUE of less than 1.2 and a green electricity supply ratio of 50%, with the potential to reach 100% through green electricity trading and green certificate transactions. VNET's sustainable development practices have been recognized internationally, with the company being included in the 2025 edition of the S&P Global Sustainability Yearbook and the 2025 edition of the Sustainability Yearbook (China version), and receiving the "Top 1%" and "Industry Best Progress" awards for the first time.