Q1 2026 GDS Holdings Ltd Earnings Call
Operator 2: Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's Q1 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the company. Please go ahead, Laura.
Operator: Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's Q1 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the company. Please go ahead, Laura.
Speaker #1: After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Miss Laura Chen.
Speaker #1: How does investor relations for the company? Please go ahead, Laura.
Speaker #2: Hello, everyone. Welcome to the first quarter 2026 earnings conference call of GDS Holdings Limited. The company's results were issued via QR services earlier today, and are posted online.
Laura Chen: Hello, everyone. Welcome to the Q1 2026 earnings conference call of GDS Holdings Limited. The company's results were issued via wire services earlier today and are posted online. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com. Leading today's call is Mr. William Huang, GDS Founder, Chairman, and CEO, who will provide an overview of our business strategy and performance. Mr. Daniel Newman, GDS CFO, will review the financial and operating results. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.
Laura Chen: Hello, everyone. Welcome to the Q1 2026 earnings conference call of GDS Holdings Limited. The company's results were issued via wire services earlier today and are posted online. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com. Leading today's call is Mr. William Huang, GDS Founder, Chairman, and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS CFO, will review the financial and operating results. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.
Speaker #2: A summary presentation which we will refer to during this conference call can be viewed and downloaded from our IR website at investorsgdservices.com. Leading today's call is Mr. William Huang, GDS founder, chairman, and CEO, who will provide an overview of our business strategy and performance.
Speaker #2: Mr. Dan Newman, GDS CFO, will then review the financial and operating results. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Speaker #2: Forward-looking statements involve adherence risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus as filed with the U.S. SEC.
Laura Chen: Further information regarding these and other risks and uncertainties is included in the company's prospectus as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that GDS earnings press release and this conference call can include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I'll now turn the call over to GDS Founder, Chairman, and CEO, Mr. William Huang. Please go ahead, William.
Laura Chen: Further information regarding these and other risks and uncertainties is included in the company's prospectus as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that GDS earnings press release and this conference call can include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I'll now turn the call over to GDS Founder, Chairman, and CEO, Mr. William Huang. Please go ahead, William.
Speaker #2: The company does not assume any obligation to update any forward-looking statements under applicable law. Please also note that GDS earnings press release and its conference call can include discussions of unaudited debt financial information as well as unaudited non-debt financial measures.
Speaker #2: The GDS press release contains a reconciliation of the unaudited non-debt measures to the unaudited most directly comparable debt measures. I'll now turn the call over to GDS founder, chairman, and CEO, Mr. William Huang.
Speaker #2: Please go ahead, William.
Speaker #3: Hello, everyone. This is William. Thank you for joining us on today's call. Over the past few quarters, we have seen a resurgence in data center demand driven by AI.
William Huang: Hello, everyone. This is William. Thank you for joining us on today's call. Over the past few quarters, we have seen a resurgence in data center demand driven by AI. We believe this is the beginning of a multi-year growth story, supported by increasing availability of the domestic chips. Customers are planning their future deployments at unprecedented data scale with a high degree of conviction. As market leaders, GDS is well-prepared to address these opportunities to the fullest extent. We have the trust of all the key customers, a multi-gigawatt development pipeline in strategic locations, and a very strong balance sheet. Up to the end of Q1 2026, our total bookings stood at 1.8 gigawatts. In our 3-years business plan, we target adding 500 megawatts to 800 megawatts of new bookings every year, with the potential to do more.
William Huang: Hello, everyone. This is William. Thank you for joining us on today's call. Over the past few quarters, we have seen a resurgence in data center demand driven by AI. We believe this is the beginning of a multi-year growth story, supported by increasing availability of the domestic chips. Customers are planning their future deployments at unprecedented data scale with a high degree of conviction. As market leaders, GDS is well-prepared to address these opportunities to the fullest extent. We have the trust of all the key customers, a multi-gigawatt development pipeline in strategic locations, and a very strong balance sheet. Up to the end of Q1 2026, our total bookings stood at 1.8 gigawatts. In our 3-years business plan, we target adding 500 megawatts to 800 megawatts of new bookings every year, with the potential to do more.
Speaker #3: We believe this is the beginning of a multi-year growth story. Supported by increasing availability of domestic chips, customers are planning their future deployments at unprecedented scale.
Speaker #3: With a high degree of conviction, as market leaders, GDS is a well-prepared to address this fullest extent. We have the trust of all the key customers, a multi-gigawatt development pipeline in strategic locations, and a very strong balance sheet.
Speaker #3: Up to the end of 1Q26, our total bookings stood at 1.8 gigawatts. In our three years business plan, we target adding 500 megawatts to 800 megawatts of new bookings every year.
Speaker #3: With the potential to do more. To deliver this capacity, we are prepared to commit RMB 30 billion to RMB 50 billion of new investment over the next three years.
William Huang: To deliver this capacity, we are prepared to commit RMB 30 billion to RMB 50 billion of new investment over the next 3 years. The economics of the data center business in China is solid, and this new investment will create significant value for our shareholders. On the last earning call, we announced a sales target for 2026 of at least 500 MW. In the year to date, we have already done over 340 MW of new bookings, and we are still being selective. We are well on track to reach or exceed our full year target. We have won significant new orders from all of our largest customers for deployments across the whole of our platform, including the new markets.
William Huang: To deliver this capacity, we are prepared to commit RMB 30 billion to RMB 50 billion of new investment over the next 3 years. The economics of the data center business in China is solid, and this new investment will create significant value for our shareholders. On the last earning call, we announced a sales target for 2026 of at least 500 MW. In the year to date, we have already done over 340 MW of new bookings, and we are still being selective. We are well on track to reach or exceed our full year target. We have won significant new orders from all of our largest customers for deployments across the whole of our platform, including the new markets.
Speaker #3: The economics of the data center business in China is solid, and this new investment will create significant value for our shareholders. On the last earnings call, we announced a sales target for 2026 of at least 500 megawatts.
Speaker #3: In the year today, we have already done over 340 megawatts of new bookings. And we are still being selective; we are well on track to reach our exceed our full year target.
Speaker #3: We have won significant new orders from all of our largest customers for deployments across the whole of our platform. Including the new markets. For the hyperscale business, customers are planning gigawatt scale deployments in single clusters.
William Huang: For the hyperscale business, customers are planning gigawatt scale deployments in single clusters. When they sign new sales agreements with us, they commit to a certain amount of capacity, which we disclose as bookings. Ask us to reserve the rest of the site for their subsequent phases. In a year today, total new bookings plus reservations comes to over 1 gigawatts. The reservation give us near certainty of winning follow on orders within the next one or two years. In order to fulfill our customer requirements, we expanded our platform to new locations which can accommodate the largest AI deployments. These new locations integrated well with our platform in established market. Enabling us to serve diversified customer requirements. Anticipating the demand trend, we increased our secured land bank to nearly 4 gigawatts.
William Huang: For the hyperscale business, customers are planning gigawatt scale deployments in single clusters. When they sign new sales agreements with us, they commit to a certain amount of capacity, which we disclose as bookings. Ask us to reserve the rest of the site for their subsequent phases. In a year today, total new bookings plus reservations comes to over 1GW. The reservation give us near certainty of winning follow on orders within the next one or two years. In order to fulfill our customer requirements, we expanded our platform to new locations which can accommodate the largest AI deployments. These new locations integrated well with our platform in established market. Enabling us to serve diversified customer requirements. Anticipating the demand trend, we increased our secured land bank to nearly 4 gigawatts.
Speaker #3: When they sign new sales agreements with us, they commit to a certain amount of capacity, which we disclose as bookings, and ask us to reserve the rest of the site for their subsequent phases.
Speaker #3: In the year today, total new bookings plus reservations comes to over 1 gigawatt. The reservation gives us near certainty of winning follow-on orders within the next one or two years.
Speaker #3: In order to fulfill our customer requirements, we expanded our platform to new locations which can accommodate the largest AI deployments. These new locations integrate well with our platform in established markets.
Speaker #3: Enabling us to serve diversified customer requirements. Anticipating the demand trend, we increased our secured land bank to nearly 4 gigawatts. Typically, we are purchasing land from the government exclusively for our data center development.
William Huang: Typically, we are purchasing land from the government exclusively for our data center development. As we obtain customer commitment, we will be granted a power quota for this site. We synchronize the timing of construction with new bookings and fixed move-in schedules. Over the past 15 months, we initiated over 100,000 square meters or 400MW of new construction, which is almost entirely pre-committed. Our backlog has increased to over 200,000 square meters or almost 600MW, most of which we will become billable within the next 6 to 8 quarters. As this occurs, our growth will start to accelerate. AI in China is a transformational opportunity. We are super motivated to support this development, and we'll commit all the resource requirement to the expansion of our AI infrastructure platform.
William Huang: Typically, we are purchasing land from the government exclusively for our data center development. As we obtain customer commitment, we will be granted a power quota for this site. We synchronize the timing of construction with new bookings and fixed move-in schedules. Over the past 15 months, we initiated over 100,000 square meters or 400MW of new construction, which is almost entirely pre-committed. Our backlog has increased to over 200,000 square meters or almost 600MW, most of which we will become billable within the next 6 to 8 quarters. As this occurs, our growth will start to accelerate. AI in China is a transformational opportunity. We are super motivated to support this development, and we'll commit all the resource requirement to the expansion of our AI infrastructure platform. I will now pass on to Dan for the financial and operating review.
Speaker #3: As we obtain customer commitment, we will be granted power quota for this site. We synchronized the timing of construction with new bookings and fixed moving schedules.
Speaker #3: Over the past 15 months, we initiated over 100,000 square meters or 400 megawatts of new construction, which is almost entirely pre-committed. Our backlog has increased to over 200,000 square meters or almost 600 megawatts, most of which we will become billable within the next six to eight quarters.
Speaker #3: And this occurs our growth will start to accelerate. AI in China is a transformational opportunity. We are super motivated to support this development. And we'll commit all the resource requirements to the expansion of our AI infrastructure platform.
Speaker #3: I will now pass on to Dan for the financial and operating review.
William Huang: I will now pass on to Dan for the financial and operating review.
Speaker #2: Thank you, William. Around new business, the unit development cost averages around 20,000 RMB per kilowatt, or $3 million US dollars per megawatt, depending on specification, cooling technology, and location.
Daniel Newman: Thank you, William. For our new business, the unit development cost averages around RMB 20,000 per kW or $3 million per MW, depending on specification, cooling technology, and location. Pricing for new business is stable, and at current levels, we're able to generate an adjusted gross profit yield of 10% to 11% for stabilized assets. As shown on slide 13, across the whole of our in-service portfolio, the adjusted gross profit yield is currently around 11%. We calculate this ratio based on adjusted gross profit, which includes the cash cost of operating assets divided by gross PP&E, which includes replacement CapEx already incurred. For conservatism, we added back historic impairment charges. The portfolio yield has been stable at around 11% for the past few years, based on a portfolio with utilization rate of around 75%.
Dan Newman: Thank you, William. For our new business, the unit development cost averages around RMB 20,000 per kW or $3 million per MW, depending on specification, cooling technology, and location. Pricing for new business is stable, and at current levels, we're able to generate an adjusted gross profit yield of 10% to 11% for stabilized assets. As shown on slide 13, across the whole of our in-service portfolio, the adjusted gross profit yield is currently around 11%. We calculate this ratio based on adjusted gross profit, which includes the cash cost of operating assets divided by gross PP&E, which includes replacement CapEx already incurred. For conservatism, we added back historic impairment charges. The portfolio yield has been stable at around 11% for the past few years, based on a portfolio with utilization rate of around 75%.
Speaker #2: Pricing for new business is stable. And it current levels we're able to generate an adjusted gross profit yield of 10 to 11 percent for stabilized assets.
Speaker #2: As shown on slide 13, across our whole of our in-service portfolio, the adjusted gross profit yield is currently around 11 percent. We calculate this ratio based on adjusted gross profit which includes the cash cost of operating assets divided by gross PP&E which includes replacement CapEx already incurred.
Speaker #2: And for a conservatism, we added back historic impairment charges. The portfolio yield has been stable at around 11 percent for the past few years.
Speaker #2: Based on a portfolio with utilization rate of around 75 percent. As our new bookings are delivered, we expect the portfolio yield to remain in the 10 to 11 percent range.
Daniel Newman: As our new bookings are delivered, we expect the portfolio yield to remain in the 10% to 11% range, which, in our view, is a reasonable return. Assuming a 6-year investment cycle of development, ramp up, stabilized operations, and then asset monetization, we expect to generate a return on equity of around 20% from the incremental investment. This underpins our confidence in growing the business. As shown on slide 13, during Q1, net additional area utilized was around 16,000 sq m. During the current quarter, this metric will be slightly lower, and then in H2, it will rebound to around 20,000 sq m per quarter. During H2 of next year, as we start to see the flow-through from this year's higher level of new bookings, the move-in rate will step up noticeably.
Dan Newman: As our new bookings are delivered, we expect the portfolio yield to remain in the 10% to 11% range, which, in our view, is a reasonable return. Assuming a 6-year investment cycle of development, ramp up, stabilized operations, and then asset monetization, we expect to generate a return on equity of around 20% from the incremental investment. This underpins our confidence in growing the business. As shown on slide 13, during Q1, net additional area utilized was around 16,000 sq m. During the current quarter, this metric will be slightly lower, and then in H2, it will rebound to around 20,000 sq m per quarter. During H2 of next year, as we start to see the flow-through from this year's higher level of new bookings, the move-in rate will step up noticeably.
Speaker #2: Which, in our view, is a reasonable return. Assuming a six-year investment cycle of development, ramp-up, stabilized operations, and then asset monetization, we expect to generate a return on equity of around 20 percent from the incremental investment.
Speaker #2: This underpins our confidence in growing the business. As shown on slide 13, during the first quarter, net additional area utilized was around 16,000 square meters.
Speaker #2: During the current quarter, this metric will be slightly lower. And then, in the second half of the year, it will rebound to around 20,000 square meters per quarter.
Speaker #2: During the second half of next year, as we start to see the flow-through from this year's higher level of new bookings, the move-in rate will step up noticeably.
Speaker #2: MSR on slide 16 is a useful metric for financial forecasting purposes that must be seen together with unit development cost. This is why we think it's more relevant to look at the gross profit yield or cash-on-cash yield as a measure of the economics of our business.
Daniel Newman: MSR on slide 16 is a useful metric for financial forecasting purposes, but must be seen together with unit development cost. This is why we think it's more relevant to look at the gross profit yield or cash-on-cash yield as a measure of the economics of our business. Turning to slide 18, during Q1, we recorded 7.9% growth in revenue and 8% growth in adjusted EBITDA after excluding one-time items which arose in the normal course of business. We find it useful to look at our growth rates on a pro forma basis, adding back the deconsolidated revenue and adjusted EBITDA of the assets which we monetized in March and July of 2025. This shows pro forma revenue and adjusted EBITDA growing at 12% to 13% after excluding one-time items. Turning to slides 19 and 20.
Dan Newman: MSR on slide 16 is a useful metric for financial forecasting purposes, but must be seen together with unit development cost. This is why we think it's more relevant to look at the gross profit yield or cash-on-cash yield as a measure of the economics of our business. Turning to slide 18, during Q1, we recorded 7.9% growth in revenue and 8% growth in adjusted EBITDA after excluding one-time items which arose in the normal course of business. We find it useful to look at our growth rates on a pro forma basis, adding back the deconsolidated revenue and adjusted EBITDA of the assets which we monetized in March and July of 2025. This shows pro forma revenue and adjusted EBITDA growing at 12% to 13% after excluding one-time items. Turning to slides 19 and 20.
Speaker #2: Turning to slide 18, during the first quarter, we recorded 7.9 percent growth in revenue and 8 percent growth in adjusted EBITDA. After excluding one-time items which arose in the normal course of business.
Speaker #2: We find it useful to look at our growth rates on a pro forma basis adding back the deconsolidated revenue and adjusted EBITDA of the assets which we monetized in March and July of 2025.
Speaker #2: This shows pro forma revenue and adjusted EBITDA growing at 12 to 13 percent after excluding one-time items. Turning to slides 19 and 20. In 1Q26, our organic CapEx was $770 million RMB.
Daniel Newman: In Q1 2026, our organic CapEx was RMB 770 million. In addition, we received cash proceeds of RMB 2.7 billion, or $385 million from the sale of a small part of our equity interest in DayOne, which is recorded in investing cash flow. We also received cash proceeds of RMB 2.1 billion, or $300 million from the issue of convertible preferred shares, which is recorded in financing cash flow. As a result of the capital recycling and new issue, we are now sitting on over RMB 19 billion or $2.7 billion of cash and time deposits. This is an ideal situation to be in as we prepare for a new growth phase. Turning to slide 23.
Dan Newman: In Q1 2026, our organic CapEx was RMB 770 million. In addition, we received cash proceeds of RMB 2.7 billion, or $385 million from the sale of a small part of our equity interest in DayOne, which is recorded in investing cash flow. We also received cash proceeds of RMB 2.1 billion, or $300 million from the issue of convertible preferred shares, which is recorded in financing cash flow. As a result of the capital recycling and new issue, we are now sitting on over RMB 19 billion or $2.7 billion of cash and time deposits. This is an ideal situation to be in as we prepare for a new growth phase. Turning to slide 23.
Speaker #2: In addition, we received cash proceeds of $2.7 billion RMB or $385 million US dollars from the sale of a small part of our equity interest in day one, which is recorded in investing cash flow.
Speaker #2: We also received cash proceeds of $2.1 billion RMB or $300 million US dollars from the issue of convertible preferred shares which is recorded in financing cash flow.
Speaker #2: As a result of the capital recycling and new issue, we are now sitting on over RMB 19 billion, or $2.7 billion US, in time deposits.
Speaker #2: This is an ideal situation to be in as we prepare for a new growth phase. Turning to slide 23, our net debt for last quarter annualized adjusted EBITDA has decreased from 6.8 times at the end of 2024 to 4.7 times at the end of the first quarter of 2026.
Daniel Newman: Our net debt to last quarter annualized adjusted EBITDA has decreased from 6.8x at the end of 2024 to 4.7x at the end of Q1 2026. As we step up our investment, this ratio will increase to between 5 to 6x, which we consider an acceptable level. Finishing on slide 25, we maintain our full year guidance unchanged. Now we'd like to open the call to questions. Operator?
Dan Newman: Our net debt to last quarter annualized adjusted EBITDA has decreased from 6.8x at the end of 2024 to 4.7x at the end of Q1 2026. As we step up our investment, this ratio will increase to between 5 to 6x, which we consider an acceptable level. Finishing on slide 25, we maintain our full year guidance unchanged. Now we'd like to open the call to questions. Operator?
Speaker #2: As we step up our investment, this ratio will increase to between 5 to 6 times. Which we consider an acceptable level. Finishing on slide 25, we maintain our full year guidance unchanged.
Speaker #2: Now we'd like to open the call to questions. Operator?
Speaker #3: Thank you so much. Dear participants, as a reminder, if you wish to ask a question, please press *11 on your telephone keypad and wait for a name to be announced.
Operator 2: Thank you so much. Dear participants, for the benefit of all participants on today's call, please limit yourself just to one question. If you have more questions, please re-enter the queue. Thank you so much. Now we are going to take our first question. It comes line of Yang Liu from Morgan Stanley. Your line is open. Please ask your question.
Operator: Thank you so much. Dear participants, for the benefit of all participants on today's call, please limit yourself just to one question. If you have more questions, please re-enter the queue. Thank you so much. Now we are going to take our first question. It comes line of Yang Liu from Morgan Stanley. Your line is open. Please ask your question.
Speaker #3: To withdraw a question, please press star 1 and 1 again. For the benefit of all participants on today's call, please limit yourself just to one question.
Speaker #3: If you have more questions, please re-enter the queue. Thank you so much. And now we're going to take our first question. And it comes line of Yang Liu from Morgan Stanley.
Speaker #3: Your line is open. Please ask your question.
Speaker #4: Hey, thanks for the opportunity to ask a question. I would like to hear your comment on the pricing for the data center business. I think Dan previously mentioned that overall pricing environment is stable.
Yang Liu: Hey, thanks for the opportunity to ask a question. I would like to hear your comment on the pricing for the data center business. I think Dan previously mentioned that overall pricing environment is stable. Could you please break it down to different market or locations? Because from time to time we hear that in certain market it's a little bit under supply, and also in certain markets there is some relative aggressive bidding from telcos, et cetera. Could you please comment on the pricing in different markets, please? Thank you.
Yang Liu: Hey, thanks for the opportunity to ask a question. I would like to hear your comment on the pricing for the data center business. I think Dan previously mentioned that overall pricing environment is stable. Could you please break it down to different market or locations? Because from time to time we hear that in certain market it's a little bit under supply, and also in certain markets there is some relative aggressive bidding from telcos, et cetera. Could you please comment on the pricing in different markets, please? Thank you.
Speaker #4: But could you please break it down to different market or locations? Because from time to time we hear that in certain market it's a little bit under supply and also in certain markets there are some relative aggressive bidding from telcos, etc.
Speaker #4: Could you please comment on the pricing in different markets, please? Thank you.
Speaker #2: Yeah, I'd say, Liu, I think this will—I think in the last earnings call we already said the new incremental demand which is driven by AI, right?
William Huang: Yeah, I'd say, Leo, I think this will I think the in the last earnings call we already say the new incremental demand, which is driven by the AI, right? A larger scale, data center demand. In general, I mean, the price pretty stable, number one. Number two, I think there, of course, in a whole, the market, you know, you cannot stop some bidder, right? use some price tools try to win that. It's not normal, right? It's not normal. it maybe it's in my view, it's in some region, some deal, it's a one time. It's not a represent the whole market situation.
William Huang: Yeah, I'd say, Liu, I think this will I think the in the last earnings call we already say the new incremental demand, which is driven by the AI, right? A larger scale, data center demand. In general, I mean, the price pretty stable, number one. Number two, I think there, of course, in a whole, the market, you know, you cannot stop some bidder, right? use some price tools try to win that. It's not normal, right? It's not normal. it maybe it's in my view, it's in some region, some deal, it's a one time. It's not a represent the whole market situation. Our view is remain what we experienced last quarter. It's quite a stable. Yeah.
Speaker #2: Larger scale data center demand. In general, I mean the price pretty stable number one. Number two, I think the of course in the whole market you cannot stop some bidder, right?
Speaker #2: Use some price tools try to win there. But it's not normal, right? It's not normal. And it's maybe it's in my view it's in some region some deal it's a one-time.
Speaker #2: It's not representing the whole market situation. Our feeling is it remains what we experienced last quarter. It's quite stable. Yeah.
William Huang: Our view is remain what we experienced last quarter. It's quite a stable. Yeah.
Speaker #3: Thank you.
Operator 2: Thank you.
Operator: Thank you.
Yang Liu: Got it. Thank you.
Yang Liu: Got it. Thank you.
Speaker #4: Got it. Thank you.
Speaker #3: Now we're going to take our next question. And the question comes line of Gokul Hariharan from JP Morgan. Your line is open. Please ask your question.
Operator 2: Now we're going to take our next question. The question comes line of Gokul Hariharan from JPMorgan. Your line is open. Please ask your question.
Operator: Now we're going to take our next question. The question comes line of Gokul Hariharan from JPMorgan. Your line is open. Please ask your question.
Speaker #5: Yeah, hi. My question is basically on the development cost. Dan, I think you mentioned roughly $20,000 sorry, $20 million RMB or $3 million per kilowatt if I remember right.
Gokul Hariharan: Yeah. Hi. My question is basically on the development cost. Dan, I think you mentioned roughly 20 million RMB or $3 million per kilowatt, if I remember right. That number sounds a lot lower than what it used to be a few years back when you updated those numbers, I think. Could you talk a little bit about what are the variables that have changed? Is it mostly the location that has really changed, or are there any other factors that have really changed to kind of reduce that development cost over the last maybe 2 to 3 years?
Gokul Hariharan: Yeah. Hi. My question is basically on the development cost. Dan, I think you mentioned roughly 20 million RMB or $3 million per kilowatt, if I remember right. That number sounds a lot lower than what it used to be a few years back when you updated those numbers, I think. Could you talk a little bit about what are the variables that have changed? Is it mostly the location that has really changed, or are there any other factors that have really changed to kind of reduce that development cost over the last maybe 2 to 3 years?
Speaker #5: That number sounds a lot lower than what it used to be a few years back when you updated those numbers, I think. Could you talk a little bit about what is the what are the variables that have changed?
Speaker #5: Is it mostly the location that has really changed? Or are there any other factors that have really changed to kind of reduce that development cost over the last, maybe, I think, two to three years?
Daniel Newman: Kevin? Yeah. I would say that the unit development cost on a like-for-like basis, whether we're talking in established markets or new markets, has decreased by about 15% over the past three years. That would be the case with the MEP, the mechanical electrical plant, which accounts for about 70% of the total development cost. I'd also say that the land, concrete, steel, and construction cost has been quite stable. If we measure it on a per square meter basis, the unit cost is relatively flat. The power density has increased, so if we were to measure that part on a per kilowatt basis, it might appear to have come down as well. That's why I think overall, on a per kilowatt basis, the decrease is about 15% over three years.
Dan Newman: Kevin? Yeah. I would say that the unit development cost on a like-for-like basis, whether we're talking in established markets or new markets, has decreased by about 15% over the past three years. That would be the case with the MEP, the mechanical electrical plant, which accounts for about 70% of the total development cost. I'd also say that the land, concrete, steel, and construction cost has been quite stable. If we measure it on a per square meter basis, the unit cost is relatively flat. The power density has increased, so if we were to measure that part on a per kilowatt basis, it might appear to have come down as well. That's why I think overall, on a per kilowatt basis, the decrease is about 15% over three years.
Speaker #2: Yeah, I would say that the unit development cost on a like-for-like basis whether we're talking in established markets or new markets has decreased by about 15% over the past three years.
Speaker #2: That would be the case with the MEP, the mechanical electrical plant which accounts for about 70% of the total development cost. I'd also say that the land, concrete, steel, and construction cost has been quite stable.
Speaker #2: If we measure it on a per square meter basis unit cost is relatively flat. But the power density has increased. So if we were to measure that part on a per kilowatt basis it might appear to have come down as well.
Speaker #2: So that's why I think overall on a per kilowatt basis the decrease is about 15% over three years.
Speaker #5: Yeah, I try to add a couple of I mean number one, the scale is unprecedented, right? So scale also make the cost a bit lower, right?
William Huang: I try to add a couple things. Number one, the scale is unprecedented, right. Scale also make the cost a bit lower, right. That's fair nature. I mean, this is number one. Even for the vendor perspective, this larger scale give the a lot of the manufacturing product company a lot of benefit, right. They're willing to reduce the cost or reduce price. This is number one. Number two, I think there is another lot of the AI data center. This is compared with the previous cloud, the architecture-wise also change a lot. This is another reason to drive down the cost, right. That's two more reasons.
William Huang: I try to add a couple things. Number one, the scale is unprecedented, right. Scale also make the cost a bit lower, right. That's fair nature. I mean, this is number one. Even for the vendor perspective, this larger scale give the a lot of the manufacturing product company a lot of benefit, right. They're willing to reduce the cost or reduce price. This is number one. Number two, I think there is another lot of the AI data center. This is compared with the previous cloud, the architecture-wise also change a lot. This is another reason to drive down the cost, right. That's two more reasons.
Speaker #5: That's fair nature. I mean, this is number one. Even from the vendor perspective, scale—that larger scale—gives a lot of the manufacturing product company a lot of benefits, right?
Speaker #5: So they're willing to reduce the cost or reduce price. This is number one. And number two, I think this is a lot of the AI data center this is compared with the previous cloud.
Speaker #5: The architecture-wise also changed a lot. So this is another reason to drive the amount of cost, right? So that's two more reasons.
Speaker #4: Okay. Thank you.
Gokul Hariharan: Okay. Thank you.
Gokul Hariharan: Okay. Thank you.
Speaker #3: Thank you. Now we're going to take our next question. And the question comes line of Sarah Wang from UBS. Your line is open. Please ask your question.
Operator 2: Thank you. Now we're going to take our next question. The question comes line of Sara Wang from UBS. Your line is open. Please ask your question.
Operator: Thank you. Now we're going to take our next question. The question comes line of Sara Wang from UBS. Your line is open. Please ask your question.
Speaker #6: Thank you for the opportunity to ask a question. So I have one question regarding first quarter CapEx. So since the first quarter CapEx is $770 million RMB, so it seems a little bit modest given the strong orders we signed here today.
Sara Wang: Thank you for the opportunity to ask a question. I have one question regarding Q1 CapEx. Since Q1 CapEx is RMB 770 million, it seems a little bit modest given the strong orders we saw in year-to-date. Especially given the majority of the new orders should be new builds. May I ask what's the reason behind this gap? Thank you.
Sara Wang: Thank you for the opportunity to ask a question. I have one question regarding Q1 CapEx. Since Q1 CapEx is RMB 770 million, it seems a little bit modest given the strong orders we saw in year-to-date. Especially given the majority of the new orders should be new builds. May I ask what's the reason behind this gap? Thank you.
Speaker #6: And especially given the majority of the new orders should be new views. So may I ask what's the reason behind this gap? Thank you.
Daniel Newman: Sara, I would point you to our full year CapEx guidance, which remains unchanged. I mean, the timing of incurring CapEx, you know, per quarter, is not that significant, right? Q1 is Chinese New Year, and it tends to be historically slightly below the level of the other 3 quarters. I have no other more fundamental explanation than that.
Dan Newman: Sara, I would point you to our full year CapEx guidance, which remains unchanged. I mean, the timing of incurring CapEx, you know, per quarter, is not that significant, right? Q1 is Chinese New Year, and it tends to be historically slightly below the level of the other three quarters. I have no other more fundamental explanation than that.
Speaker #5: Sarah, I would point you to our full-year CapEx guidance, which remains unchanged. I mean, the timing of incurring CapEx per quarter is not that significant, right?
Speaker #5: The first quarter is Chinese New Year. And it tends to be historically slightly below the level of the other three quarters. So I can't really I have no other more fundamental explanation than that.
Speaker #3: Gotcha. Thank you. Thank you. Now we're going to take our next question. And the question comes line of Frank Lozen from Raymond James and Associates.
Sara Wang: Gotcha. Thank you.
Sara Wang: Gotcha. Thank you.
Operator 2: Thank you. Now we're going to take our next question. The question comes line of Frank Louthan from Raymond James & Associates. Your line is open. Please ask your question.
Operator: Thank you. Now we're going to take our next question. The question comes line of Frank Louthan from Raymond James & Associates. Your line is open. Please ask your question.
Speaker #3: Your line is open. Please ask your question.
Speaker #4: Great. Thank you. Of the roughly $3 billion RMB that you discussed in capital you're spending, how much of that will you be will you be funding yourself versus maybe with some JV investors or with capital recycling from some of your other assets?
Frank Louthan: Great. Thank you. Of the roughly RMB 3 billion that you discussed in capital you're spending, how much of that will you be funding yourself versus maybe with some JV investors or with capital recycling from some of your other assets? Thanks.
Frank Louthan: Great. Thank you. Of the roughly RMB 3 billion that you discussed in capital you're spending, how much of that will you be funding yourself versus maybe with some JV investors or with capital recycling from some of your other assets? Thanks.
Speaker #4: Thanks.
Speaker #2: Yeah, Frank Stone. I mean just go over these numbers again. Make sure everyone is clear. So William was talking about having a sales plan of $500 megawatts to $800 megawatts over the next three years.
Daniel Newman: You know, Frank, it's Dan. Let me just go over these numbers again and make sure everyone is clear. William was talking about having a sales plan of 500 megawatts to 800 megawatts over the next 3 years. That's our current view. If you apply the logic of what I said, RMB 20,000 per kilowatt or $3 million per megawatt, that's how you end up with total CapEx over 3 years of between RMB 30 billion to RMB 50 billion. If we take the midpoint of that, say RMB 40 billion, you know, historically, we have financed our investment quite conservatively with around 60% project debt to total development cost.
Dan Newman: You know, Frank, it's Dan. Let me just go over these numbers again and make sure everyone is clear. William was talking about having a sales plan of 500 megawatts to 800 megawatts over the next 3 years. That's our current view. If you apply the logic of what I said, RMB 20,000 per kilowatt or $3 million per megawatt, that's how you end up with total CapEx over 3 years of between RMB 30 billion to RMB 50 billion. If we take the midpoint of that, say RMB 40 billion, you know, historically, we have financed our investment quite conservatively with around 60% project debt to total development cost.
Speaker #2: That's our current view. And if you apply the logic of what I said $20,000 RMB per kilowatt or $3 million US dollars per megawatt, that's how you end up with total CapEx over three years of between $30 to $50 billion RMB.
Speaker #2: So if we take the midpoint of that, say $40 billion RMB, historically we have financed our investment quite conservatively with around 60% project debt to total development cost.
Speaker #2: So we would be able to obtain and draw down on about 60% of $40 billion which is $24 billion RMB of new debt. So that would leave $14 billion RMB which is less than $2 billion US dollars that we have to finance.
Daniel Newman: We would be able to obtain and draw down on about 60% of 40 billion, which is RMB 24 billion of new debt. That would leave RMB 14 billion, which is less than $2 billion that we have to finance. We have several different sources for that. We have our operating cash flow, which last year was nearly RMB 3 billion. And we have our ongoing asset monetization program, which, you know, we try to build up step by step. We also have $2.7 billion of cash on our balance sheet.
Dan Newman: We would be able to obtain and draw down on about 60% of 40 billion, which is RMB 24 billion of new debt. That would leave RMB 14 billion, which is less than $2 billion that we have to finance. We have several different sources for that. We have our operating cash flow, which last year was nearly RMB 3 billion. And we have our ongoing asset monetization program, which, you know, we try to build up step by step. We also have $2.7 billion of cash on our balance sheet. I think we are in a strong position to finance that level of investment and, you know, other options may arise, as you point out, development partnerships and so on.
Speaker #2: So we have several different sources for that. We have our operating cash flow which is last year was nearly $3 billion RMB. We have our ongoing asset monetization program which you know we're trying to build up step by step.
Speaker #2: And we also have $2.7 billion of cash now on balance sheet. I think we're in a strong position to finance that level of investment and other options may arise.
Daniel Newman: I think we are in a strong position to finance that level of investment and, you know, other options may arise, as you point out, development partnerships and so on.
Speaker #2: As you point out, development partnerships and so on.
Speaker #4: Great. Thank you very much.
Frank Louthan: Great. Thank you very much.
Frank Louthan: Great. Thank you very much.
Speaker #3: Thank you. Now we're going to take our next question. And the next question comes from line of Ali Zhang from Maguire. Your line is open.
Operator 2: Thank you. Now we're going to take our next question. The next question comes from line of Ellie Jiang from Macquarie. Your line is open. Please ask your question.
Operator: Thank you. Now we're going to take our next question. The next question comes from line of Ellie Jiang from Macquarie. Your line is open. Please ask your question.
Speaker #3: Please ask your question.
Speaker #6: Great. Thank you, Ben, for taking my question. I just wanted to get a sense on the new bookings trajectory. The year-to-date $340 megawatts new bookings seems to be very encouraging considering the current token consumption and how AI agents are significantly boosting that compute demand of how would you kind of evaluate that upside surprises on the current scale?
Ellie Jiang: Great. Thank you, ma'am, for taking my question. I just wanted to get a sense on the new bookings trajectory. The year-to-date, 340 megawatts new bookings seems to be very encouraging. Considering the current token consumption and how, you know, AI agents are significantly boosting that compute demand, how would you kind of evaluate that upside surprises on the current scale? Thank you.
Ellie Jiang: Great. Thank you, ma'am, for taking my question. I just wanted to get a sense on the new bookings trajectory. The year-to-date, 340 megawatts new bookings seems to be very encouraging. Considering the current token consumption and how, you know, AI agents are significantly boosting that compute demand, how would you kind of evaluate that upside surprises on the current scale? Thank you.
Speaker #6: Thank you.
Speaker #5: Potential for upsize.
Daniel Newman: Potential to upside?
Dan Newman: Potential to upside?
Speaker #2: Yeah. Number one, I think we are $500 megawatt we are very confident for this number with a new booking. Definitely. That's a base case.
William Huang: Yeah, we, number 1, I think We are 500 MW. We are very confident for this number with a new booking. Definitely. That's a base case. We are looking at it a more high number booking. It's too early to say what kind of level we can reach. We try to because we are still very, we remain very disciplined to select the order in terms of the moving price, and the customer types. This is in general, I think it's we are very confident we can do more. Even though we still want to do high quality order.
William Huang: Yeah, we, number 1, I think We are 500 MW. We are very confident for this number with a new booking. Definitely. That's a base case. We are looking at it a more high number booking. It's too early to say what kind of level we can reach. We try to because we are still very, we remain very disciplined to select the order in terms of the moving price, and the customer types. This is in general, I think it's we are very confident we can do more. Even though we still want to do high quality order.
Speaker #2: We are looking at a more high number booking. But it's too early to say what kind of level we can reach. We will try to because we are still very we remain very disciplined to select the order in terms of the moving price and customer types.
Speaker #2: So this is in general, I think we're very confident we can do more. But even though, we still want to do high-quality orders.
Ellie Jiang: Got it. If I may, just a quick follow-up. Would it be possible for you guys to consider, kind of doing some of the Neocloud business models as well? Because it does seem like some of the peers are trying to accumulate more resources on the compute side. So that was being perceived as approach to boost the MSR or revenue in general. Is that something that we're considering as well?
Speaker #6: Got it. And if I may, just a quick follow-up. Would it be possible for you guys to consider kind of doing some of the neocloud business models as well?
Ellie Jiang: Got it. If I may, just a quick follow-up. Would it be possible for you guys to consider, kind of doing some of the Neocloud business models as well? Because it does seem like some of the peers are trying to accumulate more resources on the compute side. So that was being perceived as approach to boost the MSR or revenue in general. Is that something that we're considering as well?
Speaker #6: Because it does seem like some of the peers are trying to accumulate more resources on the compute side so that was being perceived as approach to boost the MSR or revenue in general.
Speaker #6: Is that something that we're considering as well?
Speaker #5: Yeah. I think the neocloud actually is not something new in China already. Historically, they are a lot of big platform GPU service provider customer already, right?
William Huang: I think the Neocloud actually is not something new in China already. Historically, there are a lot of big platform, GPU service provider customer already, right? We are already serve them indirectly, right? This is number one. Number two, I think we are for the long term perspective, we also start to build some relationship with them. So far we haven't do any business with them. We will see, because in terms of maybe we can, as I said, we'll maintain our very discipline in terms of the financial return and the risk, everything, right? If some Neocloud, high quality Neocloud, we're willing to do something with them, start to build some relationship. Yeah.
William Huang: I think the Neocloud actually is not something new in China already. Historically, there are a lot of big platform, GPU service provider customer already, right? We are already serve them indirectly, right? This is number one. Number two, I think we are for the long term perspective, we also start to build some relationship with them. So far we haven't do any business with them. We will see, because in terms of maybe we can, as I said, we'll maintain our very discipline in terms of the financial return and the risk, everything, right? If some Neocloud, high quality Neocloud, we're willing to do something with them, start to build some relationship. Yeah.
Speaker #5: We already serve them indirectly, right? So this is number one. But number two, I think we are, from a long-term perspective, also starting to build some relationship with them.
Speaker #5: So far, we haven't do any business with them. And we will see because in terms of maybe we can as I said, we'll maintain our very discipline in terms of the financial return and the risk everything, right?
Speaker #5: So, if some Neocloud—high-quality Neocloud—we're willing to do something with them, start to build some relationship.
Speaker #2: Yeah.
Speaker #6: Got it. Thank you very much.
Ellie Jiang: Got it. Thank you very much.
Ellie Jiang: Got it. Thank you very much.
Speaker #3: Thank you. Now we're going to take our next question. The question comes from Timothy Zhao with Goldman Sachs. Your line is open.
Operator 2: Thank you. Now we're going to take our next question. The question comes line of Timothy Zhao from Goldman Sachs. Your line is open. Please ask your question.
Operator: Thank you. Now we're going to take our next question. The question comes line of Timothy Zhao from Goldman Sachs. Your line is open. Please ask your question.
Speaker #3: Please ask your question.
Speaker #4: Great, thank you, Michael, for taking my question. My question is regarding the medium pace or the growth of additional area utilized. Just wondering, after the first quarter, can you share your latest outlook for the rest of this year in terms of the medium pace, and what are the key moving factors that may affect the utilization rate ramp-up?
Timothy Zhao: Great. Thank you, Management, for taking my question. My question is regarding the movement pace or the growth of additional area utilized. Just wondering, after Q1, can you share your latest outlook for the rest of this year in terms of the moving pace and what are the key moving factors that may affect the usage integrated ramp from now? Thank you.
Timothy Zhao: Great. Thank you, Management, for taking my question. My question is regarding the movement pace or the growth of additional area utilized. Just wondering, after Q1, can you share your latest outlook for the rest of this year in terms of the moving pace and what are the key moving factors that may affect the usage integrated ramp from now? Thank you.
Speaker #4: Thank you.
Daniel Newman: Timothy, I couldn't hear you clearly, but I'm told you're asking about the moving pace, right? I did address that in the prepared remarks. As you know, it was 16,000 square meters in the Q1. It will be a lower number in Q2, and then it will rebound, I'd say to around 20,000 square meters in Q3 of this year and Q4 this year. Next year we will see a significant step up, but it will be in H2 of 2027, in Q3 and Q4 of 2027. If we look at 2026 and 2027 as a whole, I think the move-in this year will be somewhat over 70,000 square meters.
Speaker #5: Timothy, I couldn't hear you clearly, but yeah, I thought yes, as I—yeah. I'm told you're asking about the moving pace. So I did address that in the prepared remarks.
Dan Newman: Timothy, I couldn't hear you clearly, but I'm told you're asking about the moving pace, right? I did address that in the prepared remarks. As you know, it was 16,000 square meters in the Q1. It will be a lower number in Q2, and then it will rebound, I'd say to around 20,000 square meters in Q3 of this year and Q4 this year. Next year we will see a significant step up, but it will be in H2 of 2027, in Q3 and Q4 of 2027. If we look at 2026 and 2027 as a whole, I think the move-in this year will be somewhat over 70,000 square meters. Next year's number is going to be very substantially larger than that. Maybe double, something of that order of magnitude.
Speaker #5: As you know, it was 16,000 square meters in the first quarter. It will be a lower number in the second quarter, and then it will rebound, I would say, to around 20,000 square meters in the third quarter of this year.
Speaker #5: In the fourth quarter of this year. And next year, we will see a significant step up, but it will be in the second half of 2027.
Speaker #5: In the third and fourth quarter of 2027. But if we look at 2026 and 2027 as a whole, I think the move-in this year will be somewhat over 70,000 square meters.
Speaker #5: And then next year's number is going to be very substantially larger than that. Maybe double, something of that order of magnitude.
Daniel Newman: Next year's number is going to be very substantially larger than that. Maybe double, something of that order of magnitude.
Speaker #4: Sure. And can I ask a follow-up, if I may? Just wondering, I think behind these moving assumptions, what are the key new factors?
Timothy Zhao: Sure, understood. Can I ask a follow-up if I may? Just wondering, I think behind it, so many assumptions. I think we wanted to see new factors. I.e., like how much of that is contributed by the domestic chips versus the imported chips. I'm just wondering if you can share more color.
Timothy Zhao: Sure, understood. Can I ask a follow-up if I may? Just wondering, I think behind it, so many assumptions. I think we wanted to see new factors. I.e., like how much of that is contributed by the domestic chips versus the imported chips. I'm just wondering if you can share more color.
Speaker #4: So i.e., how much of that is contributed by the domestic trade versus the imported chips? I'm just wondering if you can share more color.
Laura Chen: Sorry.
Laura Chen: Sorry.
Daniel Newman: Julie?
Dan Newman: Chen?
Laura Chen: Imported chips and whether chips will affect your moving.
Speaker #6: Imported chips and whether chips will affect your moving.
Laura Chen: Imported chips and whether chips will affect your moving.
Speaker #5: Oh, okay. Okay.
Daniel Newman: Oh, okay. Okay.
Dan Newman: Oh, okay. Okay.
Speaker #2: Oh, yeah. I think I'm not sure it's your question. I mean, chips will affect our moving, right? Is that your question?
William Huang: Oh, yeah. I think, I'm not sure it's your question. I mean, import chips will affect our moving, right? Is that your question?
William Huang: Oh, yeah. I think, I'm not sure it's your question. I mean, import chips will affect our moving, right? Is that your question?
Speaker #5: Yeah.
Daniel Newman: Yeah.
Dan Newman: Yeah.
Speaker #4: Oh, yes.
Timothy Zhao: Yes.
Timothy Zhao: Yes.
Speaker #2: Hello?
Speaker #4: Yes. Yes.
William Huang: Hello?
William Huang: Hello?
Timothy Zhao: Yes. More like, yes.
Timothy Zhao: Yes. More like, yes.
Speaker #5: Yeah. Okay.
Daniel Newman: Yeah. Okay.
Dan Newman: Yeah. Okay.
Speaker #2: Okay. Frankly, this year's forecast is not based on any import chips. So all based on the domestic chips supply chain. So it will not impact our current estimation.
William Huang: Okay. Frankly said, this year's forecast are not based on the any import chips. All based on the domestic chips supply chain. It will not impact our current estimation. If the import coming, maybe some upside, who know, right?
William Huang: Okay. Frankly said, this year's forecast are not based on the any import chips. All based on the domestic chips supply chain. It will not impact our current estimation. If the import coming, maybe some upside, who know, right?
Speaker #2: So, if the import is coming, maybe some upside. Who knows? Right?
Speaker #4: Okay. Got it. Thank you.
Timothy Zhao: Okay. Got it. Thank you.
Timothy Zhao: Okay. Got it. Thank you.
Speaker #3: Thank you. Now we're going to take our next question. The question comes from Daily Lee with Bank of America Securities. Your line is open.
Operator 2: Thank you. Now we're going to take our next question. The question comes line of Daley Li from Bank of America Securities. Your line is open. Please ask your question.
Operator: Thank you. Now we're going to take our next question. The question comes line of Daley Li from Bank of America Securities. Your line is open. Please ask your question.
Speaker #3: Please ask your question.
Speaker #7: Hi, Michael. Thanks for taking my question. My question is about our land and the power resources. We have secured quite strong resources in Q1, and are we planning to expand our resources in the following quarters?
Daley Li: Hi, management. Thanks for taking my question. My question is about our land and power resources. We have secured quite strong resources in Q1. Are we planning to expand our resources in the following quarters? If we have the plan in future, what kinds of area we would focus on? Thank you.
Daley Li: Hi, management. Thanks for taking my question. My question is about our land and power resources. We have secured quite strong resources in Q1. Are we planning to expand our resources in the following quarters? If we have the plan in future, what kinds of area we would focus on? Thank you.
Speaker #7: And if we have the plan in future and what kinds of area we would focus on? Thank you.
Daniel Newman: Continue to add to our resource.
Dan Newman: Continue to add to our resource.
Speaker #5: Continue to our resources.
William Huang: I think that last quarter we already answered the question. We are, we will continue to develop the new market and establish the market as well. In China, what happened is the training and the inference demands all happening in the same time. I think we try. Everybody know GDS is a platform player, not just a project player, right? We try to build, try to fulfill all the kind of the AI demand, whatever is training or in the future or, let's say inference. We try to catch up. We're well-positioned to catch up the different pace of the AI demand.
Speaker #2: I think the last quarter, we already answered the question. We will continue to develop the new market and establish the market as well because in China, what happened is the training and the inference demands all happening in the same time.
William Huang: I think that last quarter we already answered the question. We are, we will continue to develop the new market and establish the market as well. In China, what happened is the training and the inference demands all happening in the same time. I think we try. Everybody know GDS is a platform player, not just a project player, right? We try to build, try to fulfill all the kind of the AI demand, whatever is training or in the future or, let's say inference. We try to catch up. We're well-positioned to catch up the different pace of the AI demand.
Speaker #2: So I think we are, because everybody knows GDS is a platform player, not just a project player, right? So we try to build, try to fulfill all the kind of AI demand, whether it's training or, in the future, let's say, inference.
Speaker #2: So we try to catch up, well-positioned to catch up the different pace of the AI demand.
Speaker #7: Thank you, William.
Daley Li: Thank you.
Daley Li: Thank you.
Operator 2: Thank you. Due to time limit of today's call, I would like now to turn the call back over to the company for any closing remarks.
Operator: Thank you. Due to time limit of today's call, I would like now to turn the call back over to the company for any closing remarks.
Speaker #3: Thank you. Due to time limit of today's call, I would like now to turn the call back over to the company for any closing remarks.
Speaker #6: Thank you once again for joining us today and see you next time. Bye.
Laura Chen: Thank you once again for joining us today, and see you next time. Bye.
Laura Chen: Thank you once again for joining us today, and see you next time. Bye.
Speaker #2: Thank you.
William Huang: Thank you.
William Huang: Thank you.
Operator 2: This concludes today's conference call. You may now disconnect your line. Thank you.
Operator: This concludes today's conference call. You may now disconnect your line. Thank you.
