Solid Q1 Performance: GDS Holdings reported a revenue growth of 12% year-on-year and adjusted EBITDA growth of 15% in Q1 2025, marking their highest growth rate in two years. Gross move-ins reached approximately 20,000 square meters, with a utilization rate of 75.7%, indicating strong operational performance.

AI Demand Driving Growth: The demand for AI-related services, specifically AI inferencing, is increasing, particularly in Tier 1 markets like Beijing, Shanghai, and Shenzhen. A significant 152 megawatts deal signed in Q1 reflects this trend. GDS holds around 900 megawatts of capacity for future development, positioning them well to capitalize on emerging AI-related opportunities.

Guided EBITDA Expectations: The company expects quarterly adjusted EBITDA to increase on average by high-single digits percentage year-on-year for the remaining three quarters of 2025. This reflects a focus on maintaining strict financial discipline while pursuing growth opportunities related to AI.