BRIEF: GDS revenue rises, spins off international unit

9698.HK GDS.US
Baidu does infrastructure

Data center operator GDS Holdings Ltd. (GDS.US: 9698.HK) said on Wednesday its revenue rose 9.1% year-on-year in the fourth quarter to 2.69 billion yuan ($372 million), while its net loss from continuing operations narrowed to 173 million yuan from 3.07 billion yuan.

The company also announced the completion of a new fundraising for its international unit, formerly known as GDS International, whose new name is DayOne Data Centers Ltd. Following the fundraising, GDS’ stake in DayOne Data Centers dropped to a minority 35.6% from a previous 52.7%. Following that stake reduction, GDS said it will no longer include DayOne Data Center’s results in its own financial reports.

GDS’ U.S.-listed shares fell 14% to close at $30.61 on Wednesday after the results were announced. The stock has nearly quadrupled over the last 52 weeks on investor enthusiasm towards data center operators due to growing demand from AI applications.

By Doug Young

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