Aug 13, 2026 earnings call — Raised sales target to 1 gigawatt
Company raised full year sales target to 1 gigawatt after 260 megawatts of Q2 new bookings.
Revenue $0.5B (est $0.5B) · EPS $0.52 (est $0.01)
Key quotes
"AI is transforming our business. Our sales momentum is the strongest we have ever seen."
"So far this year, we have secured an additional 600 megawatts of reservations for our -- from our customers."
"Our unit CapEx for the new capacity, which we are constructing averages around RMB 20 million per megawatt. As we just raised our sales target for the current year, we are also raising our guidance for CapEx paid from RMB 9 billion to RMB 10 billion, most of which is in the second half."
Analyst Q&A 6
GPU supply and contract protection
Q (Yang Liu · Morgan Stanley): Analyst asked what downside risks could delay customer move-ins given GPU availability and CapEx, and whether take-or-pay contracts protect GDS revenue if GPUs are delayed.
A: Management said domestic GPU supply is catching up and many new orders are CPU-driven, which reduces supply risk. They also said each contract has a fixed delivery date and many contracts have short move-in periods; their forecast assumes move-ins average over 4 quarters and could be faster or slower.
"The first is that in each contract, there is a specific delivery date when the capacity has to be available to move in by the customer and that is a fixed date in each contract." — Daniel Newman (CFO)
New AI customers vs hyperscalers
Q (Xinyi Wang · UBS): Analyst asked whether emerging AI leaders have different demand profiles or contract terms compared with established hyperscale customers.
A: Management said they are selectively building relationships with new AI leaders and that these customers’ demand profiles look like they are getting bigger. They emphasized the main new business is still driven by large hyperscalers while they start to diversify.
"I think in terms of their demand profile, it looks like it's getting bigger and bigger, but we are still very selective." — William Huang (CEO·CHAIR)
Guidance and MRR / MSR trend
Q (Frank Louthan · Raymond James & Associates): Analyst asked if the new guidance includes any C-REIT or asset monetization effects and how to think about the slowdown in MRR (MSR) and future MRR improvement.
A: Management said the guidance does not include any further asset monetization and a transaction in progress is not factored in. They also said MSR on a same-quarter basis: 4Q '26 compared with 4Q '25 is forecast to be down 3%, partly due to location mix and legacy contracts transitioning over about 18 months.
"Frank, first of all, on guidance, to make clear that our guidance does not take account of any further asset monetization." — Daniel Newman (CFO)
Q2 move-in drivers and power approvals
Q (Huiqun Li · BofA): Analyst asked what drove better-than-expected Q2 move-in and how demand/supply looks in China given power quota approval progress.
A: Management said quarterly move-in swings reflect bookings timing: most current move-in was booked in 2025 or earlier and bookings increased strongly from this year's first quarter, implying a significant increase in move-in in the second half of 2027. On power approvals, they said the process is controlled at municipal, provincial and central levels and the government is selective, favoring market leaders, which is why GDS built its land bank.
"Number one is now it's controlled by the central government and the municipal government as well." — William Huang (CEO·CHAIR)
Bookings vs reservations and power reserves
Q (Yu Lee · Jefferies): Analyst asked to confirm definitions of bookings and reservations, why bookings target doubled, and where power reserves are located.
A: Management clarified a sales agreement contains a booking, which is a contractual take-or-pay commitment, and the document also reserves capacity for the customer; bookings and reservations go together for customers' planning. They said customers have exercised reservations "in a 100% basis" recently, the booking increase reflects stronger market demand and higher hyperscaler CapEx, and the identified developable capacity is almost entirely in new markets with only a small amount unreserved in established markets.
"What I'd like to make clear is that there's a sales agreement, which contains a booking, which is a contractual take-or-pay commitment." — Daniel Newman (CFO)
CPU vs GPU mix and growth outlook
Q (Timothy Zhao · Goldman Sachs): Analyst asked for the breakdown between CPU and GPU move-ins this year and next, and how the expected large move-in would affect revenue and EBITDA into 2027 and 2028.
A: Management said they do not have detailed breakdown numbers but gave a general assumption of around 50-50 for CPU vs GPU. They added GPU may be a little higher next year as domestic supply catches up, and management said 2027 will see significant acceleration with end-of-year position important for 2028 growth (full guidance will be given around March).
"But in general, I think I can give you the general -- I mean, assumption, maybe it's around 50-50." — William Huang (CEO·CHAIR)