GDS Holdings Limited (NASDAQ:GDS), one of China’s largest data center developers and operators, reported third-quarter results on Wednesday that aligned with analyst expectations as utilization rates improved and AI demand continued to strengthen. Shares edged 1% higher following the release.
Revenue for the quarter came in at RMB2.89 billion ($405.6 million), matching consensus estimates and marking 10.2% year-over-year growth. Adjusted earnings per ADS were RMB3.21 ($0.45), while adjusted EBITDA climbed 11.4% YoY to RMB1.34 billion ($188.5 million). The adjusted EBITDA margin expanded slightly to 46.5%, up from 46.0% last year.
Operational metrics showed continued momentum. Total area utilized increased 10.9% YoY to 486,607 square meters, and the utilization rate improved to 74.4%, reflecting solid customer demand despite broader economic uncertainty.
Chairman and CEO William Huang highlighted the company’s execution and long-term positioning, stating, “We delivered another quarter of solid financial and operational performance, driven by our disciplined strategic execution. We are strategically positioned to capture the accelerating demand from AI, which we view as a significant, long-term growth catalyst for our business.”
The quarter also included the launch of GDS’s China REIT (C-REIT), which began trading on the Shanghai Stock Exchange on August 8. The offering generated RMB2.25 billion ($315.8 million) in net cash proceeds.
CFO Dan Newman emphasized the company’s strengthened balance sheet, saying, “With enhanced financial flexibility to support our next phase of growth, we remain dedicated to delivering sustainable, long-term value for our stakeholders.”
GDS reiterated its 2025 full-year outlook, maintaining revenue guidance of RMB11.29–11.59 billion and adjusted EBITDA of RMB5.19–5.39 billion.