GDS Holdings Limited (GDS) Stock Analysis

GDS’s primary competitive advantage is its scale and entrenched position in China’s Tier 1 data center markets—Shanghai, Beijing, Shenzhen, and Guangzhou—where barriers to entry are high due to land, power, and regulatory constraints. As of June 2025, GDS operated 618,000 square meters of data center space in service, with a 91.5% commitment rate and 77.5% utilization, outpacing most domestic rivals. Its customer base is concentrated among China’s largest cloud and internet companies, with the top five accounting for over 70% of committed area, reflecting deep, sticky relationships.

Unlike state-owned carriers (China Telecom, China Unicom, China Mobile), GDS is carrier-neutral, allowing customers to connect to all major networks within its facilities. This flexibility is a key differentiator, especially for hyperscale clients seeking redundancy and cost optimization.

Operationally, GDS’s in-house design and modular construction enable rapid delivery and customization, supporting high power density (average 2.2 kW/sqm) and industry-leading energy efficiency (PUE as low as 1.24 for new builds). Customer satisfaction is high, with a 2024 net promoter score of 91%.

Internationally, GDS is expanding through its DayOne platform, but remains smaller than global peers like Equinix and Digital Realty. However, its local expertise, regulatory navigation, and long-term client contracts provide a durable moat in China’s structurally growing digital infrastructure market.