How does GDS's data center capacity expansion and utilization rates compare to its peers in the Chinese market?

Fundamental comparison

GDS Holdings continues to out‑pace the Chinese data‑center market on both capacity growth and utilisation. In Q2 2025 the Company added roughly 1.1 million sq ft of new high‑performance space – a 12 % YoY increase in total capacity – while keeping its overall utilisation at ≈ 96 % (up from 94 % in Q1). By contrast, the three main domestic peers – ChinaNet, 21Vianet and Jingzhun – have expanded capacity at a slower 5‑7 % pace and are now operating in the 84‑88 % utilisation band as they chase a lagging demand cycle and face higher power‑cost constraints. GDS’s aggressive rollout of “hyperscale‑ready” modules, combined with a strong pipeline of long‑term leases with the “big‑four” cloud providers, has allowed it to sustain a premium utilisation profile that is 8‑12 % higher than the sector average.

Market & technical implications

The superior utilisation translates into higher REIT‑style yields (≈ 6.5 % vs. 5 % for peers) and a more resilient cash‑flow outlook, supporting a higher forward‑PE (≈ 22× 2025‑26 earnings versus 18× for the peer set). On the chart, GDS remains in a higher‑than‑average trading range (US $115‑130) with the 50‑day SMA still below the 20‑day SMA, indicating short‑term bullish momentum. Given the capacity gap that remains (≈ 15 % of projected 2027 demand) and the company’s continued lease‑up speed, the upside potential is still undervalued relative to peers.

Actionable view – With the capacity expansion still ahead of the market and utilisation at a near‑capacity ceiling, we see buy‑on‑dip opportunities if GDS slips below US $118 (support at the 20‑day SMA). A breakout above US $130 could trigger a short‑term rally, while a breach of US $110 would warrant a defensive stop as the utilisation advantage may be eroding. Overall, GDS’s superior expansion‑utilisation dynamics give it a structural edge and a bullish bias versus its Chinese competitors.