What GDS Holdings (GDS)’s DayOne $1 Billion Fundraising for Global Expansion Means For Shareholders

• DayOne, a global data centre operator affiliated with GDS Holdings, recently sought to raise over US$1 billion in a funding round aimed at expanding its footprint in Southeast Asia and Europe.
• This substantial capital-raising effort highlights rising investor interest in international data infrastructure growth outside of GDS Holdings’ core Chinese market.
• We’ll explore how DayOne’s large-scale funding push for international expansion could shape GDS Holdings’ broader investment narrative and growth prospects.

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GDS Holdings Investment Narrative Recap

To be a shareholder in GDS Holdings, you need to believe in the potential for long-term demand for international cloud and AI infrastructure, supported by the company’s expansion beyond China. The recent DayOne funding push signals momentum for growth in Southeast Asia and Europe but has no material effect on the most important short-term catalyst: a recovery in chip supply and related AI project ramp-up. The biggest immediate risk remains GDS’s high leverage and capital market reliance, which are unchanged by this development.

The most relevant recent announcement is GDS’s confirmation of earnings guidance for 2025, with revenue expected between RMB 11,290 million and RMB 11,590 million. This guidance underpins expectations for continued top-line expansion, aligning with the company’s international growth ambitions through DayOne. However, capital allocation decisions in pursuit of global opportunities remain closely linked to how GDS manages its balance sheet and risk profile.

By contrast, investors should be mindful of the risk that persistent dependence on asset monetization and high leverage could expose the business if capital market conditions tighten…

Read the full narrative on GDS Holdings (it’s free!)

GDS Holdings’ narrative projects CN¥16.2 billion revenue and CN¥734.2 million earnings by 2028. This requires 14.1% yearly revenue growth and a CN¥457 million earnings increase from the current CN¥277.2 million.

Uncover how GDS Holdings’ forecasts yield a $47.44 fair value, a 38% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members assigned fair values ranging from CN¥5.80 to CN¥61.83 across four independent perspectives. While international expansion is viewed as a key catalyst, you will see investors offer many different views on future performance.

Explore 4 other fair value estimates on GDS Holdings – why the stock might be worth as much as 80% more than the current price!

Build Your Own GDS Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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