GDS Holdings Limited

The call did not disclose quarterly revenue, EPS, or gross margin figures. GDS said 2Q 2026 new bookings were 260 MW, with 1H 2026 bookings at 470 MW, backlog at 757 MW by midyear, and booked-but-not-billed adjusted EBITDA at around RMB 1.6 billion based on an average of RMB 2.2 million of adjusted EBITDA per MW. Net move-in was 145 MW in 1H 2026, with 90 MW expected in 2H for 235 MW full-year, and unit CapEx for new capacity averages around RMB 20 million per MW. Management raised full-year sales target to 1 GW and CapEx paid guidance to RMB 10 billion from RMB 9 billion; it also said 2Q alone included RMB 4.9 billion of new debt financing and refinancing, cash was nearly RMB 20 billion, and net debt to last quarter annualized adjusted EBITDA was 4.7x. For full-year 2026, management expects backlog to exceed 1 GW, 2027 move-in to be more than double 2026, and 2028 to bring another step-up in move-in and growth.

William Huang framed AI infrastructure demand as the main growth driver and said GDS is benefiting from both hyperscale cloud customers and emerging AI leaders. He emphasized the company’s binding take-or-pay sales agreements, the value of reservations, and GDS’s position across key China markets, saying the business has “the strongest” sales momentum it has ever seen. He sounded confident but selective, stressing financial discipline, customer quality, and contract terms even as the company pushes toward a much higher sales target.

Daniel Newman focused on backlog, move-in timing, and funding. He said backlog increased from 450 MW to 757 MW, with RMB 2.2 million of adjusted EBITDA per MW implied by those contracts and about RMB 1.6 billion of booked-but-not-billed adjusted EBITDA. He raised CapEx paid guidance to RMB 10 billion, said unit construction CapEx averages around RMB 20 million per MW, and noted financing remains available with 60% debt/40% equity at the project level, nearly RMB 20 billion of cash, RMB 4.9 billion of new debt financing/refinancing in 2Q, and net debt of 4.7x last quarter annualized adjusted EBITDA. He also said full-year revenue and adjusted EBITDA guidance were revised upward to reflect a more accurate outlook including one-time items from 1Q 2026, and that guidance excludes any further asset monetization.

Analysts pressed on whether GPU shortages or customer delays could slow move-in, and management said domestic GPU supply is catching up while some bookings are driven by CPU and traditional cloud demand; Newman added that take-or-pay contracts include fixed delivery dates and that the company’s move-in forecast assumes an average four-quarter ramp but could vary contract by contract. Questions also centered on the new reservations framework, and management clarified that bookings and reservations are part of the same sales agreement rather than a separate MOU; Huang said reservation conversion has been 100% in the last 12 to 18 months. Analysts asked about the jump in the bookings target from 500 MW to 1 GW, and Huang said it reflects stronger market demand and hyperscalers continuing to raise CapEx. On mix, Huang said CPU and GPU demand is roughly 50/50 today, with GPU possibly a little higher next year as domestic supply improves.