GDS Holdings Expands Global Footprint in Data Centre Sector

Being placed ninth in Data Centre Magazine’s Top 100 Data Centre Companies list underscores GDS Holdings’ role as a major operator in the industry. The company has made shifts in finance, operations and international strategy that reflect both opportunity and challenge in the data centre sector.

From design to delivery: GDS’s role in China’s digital backbone

GDS Holdings Limited is active as a developer and operator of high‑performance data centres in China. Its business model centres on large net floor area, high power capacity, density and efficiency, with multiple redundancies in core systems.

GDS is carrier- and cloud-neutral, enabling customers to interconnect with major telecom networks and public clouds. It provides co‑location services and value‑added offerings such as managed hybrid cloud access, private cloud connectivity, managed network services and even resale of public cloud capacity in some cases.

Its customer base includes hyperscale cloud providers, large internet firms, financial institutions, telecom carriers, IT providers and large enterprises. In China, its footprint is concentrated in primary economic hubs where demand is strong. 

GDS also holds a 35.6% equity interest in DayOne Data Centers Limited, an entity focused on operations outside China in Southeast Asia, Japan and beyond. 

Financial discipline and balance‑sheet innovation

In the first quarter of 2025, GDS posted net revenue of RMB 2,723.2M (US$ 375.3M), up 12.0 % year on year, and achieved net income of RMB 764.1M  (US$107.2M ) – a swing from a net loss of RMB 344.9M a year earlier, with a net profit margin of 28.1%

In early 2025, GDS carried out a first asset‑based security (ABS) transaction in China: it sold a 100% equity interest in certain project companies to a special purpose vehicle, retaining operational rights and subscribing 30% of the ABS. The deal freed up capital via deconsolidation while preserving long‑term control.

William Huang, GDS’s Chairman and Chief Executive Officer, remarked: “In the first quarter of 2025, we achieved solid operational and financial performance, driven by our consistently focused strategic execution. We remain committed to delivering our backlog while maintaining a highly selective approach to new bookings.” 

Dan Newman, Chief Financial Officer, added: “In the second quarter of 2025, our revenue increased by 12.4% and adjusted EBITDA grew by 11.2% year-over-year, with an adjusted EBITDA margin of 47.3%. On the funding side, we raised net proceeds of US$676m through new convertible senior notes and equity. Our new C-REIT platform provides us with enhanced financing flexibility. We remain focused on creating sustainable, long-term value for our business partners and shareholders.”

That mix of organic expansion and financial innovation has bolstered GDS’s capacity to deploy new capacity while managing capital intensity.

Expansion beyond China and emerging challenges

GDS’s push into international markets is driven through DayOne, which operates in Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Japan. 

In March 2025, GDS sought a US$3.4bn loan for its Malaysia operations – a five-year facility to support capital expenditure and refinancing. The borrowing would be one of the largest in Asia for a data centre operator. The proceeds are directed toward its Johor campus and broader Southeast Asia build‑out.

GDS also has confirmed prior discussions with private equity investors regarding expansion outside China, including possible investment deals of US$ 500-600m, though no definitive agreements have been reached.

In late 2025, the Malaysian government introduced tighter permit requirements for new data centre builds, citing power and water constraints and export controls tied to AI chip regulation, affecting companies with Chinese ties. GDS responded by spinning off its overseas operations under DayFOne in January 2025 to separate regulatory risks between Chinese and international arms.

In that context, GDS’s strategy is under test: it must reconcile capital demands, regulatory scrutiny and execution across markets while maintaining disciplined margins. Yet its performance to date and structural moves help explain its ascent to ninth place in the 2025 Top 100 Data Centre Companies list by Data Centre Magazine.