Q2 2026 GDS Holdings Ltd Earnings Call
Operator: Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Ltd's Q2 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 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, Ms. Laura Chen, Head of Investor Relations for the company.
Speaker #1: Please go ahead, Laura.
Speaker #2: Thank you. Hello, everyone. Welcome to the Q2 2026 earnings conference call of GDS Holdings Limited. The company's results were issued via newswire services earlier today and are posted online.
Laura Chen: Thank you. Hello, everyone. Welcome to the Q2 2026 earnings conference call of GDS Holdings Limited. The company's results were issued via news 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 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. 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: Thank you. Hello, everyone. Welcome to the Q2 2026 Earnings Conference Call of GDS Holdings Ltd. The company's results were issued via news 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.
Speaker #2: A summary presentation, which we'll refer to during this conference call, can be viewed and downloaded from our IR website at investors.gdservices.com. Meeting today's call is Mr. William Huang, GDS founder, chairman, and CEO, who will provide an overview of obvious strategy and performance.
Laura Chen: 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 then review the financial and operating results.
Speaker #2: Mr. Daniel 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.
Laura Chen: 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: The Private Securities Litigation Reform Act of 1995. Privileged written statements involve inherent risks and uncertainties; as such, the company's results may be materially different from the views expressed today.
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 call 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 will now turn over the call 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 US SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.
Speaker #2: 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 privileged written statements except as required under applicable law.
Speaker #2: Please also note that GDS earnings press release on this call includes discussions of an audited GAAP financial information as well as an audited non-financial non-GAAP financial measures.
Laura Chen: Please also note that GDS earnings press release and this call 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 will now turn over the call to GDS Founder, Chairman, and CEO, Mr. William Huang. Please go ahead, William.
Speaker #2: GDS press release contains a reconciliation of the un-audited non-GAAP measures to the un-audited most directly comparable GAAP measures. I'll now turn over the call to GDS founder, chairman, and CEO, Ms. William Huang.
Speaker #2: Please go ahead, William.
William Huang: Hello, everyone. This is William. Thank you for joining us on today's call. AI is transforming our business. Our sales momentum is the strongest we have ever seen. in Q2, we achieved 260 MW of new bookings, bringing our total for the H1 2026 to a record 470 MW. During the current quarter, we are well on the way to securing further major business wins with leading customers. We are confidently raising our full-year sales target to 1 GW. All of our sales agreements include a binding take-or-pay commitment. It is a metric which we disclose as bookings. The sales agreements specify the delivery date, which is up to four quarters after bookings. This allows us to invest based on secure commitments. Following the delivery date, there is an agreed ramp-up period, usually another four quarters, which gives us visibility to the timing of new billings.
William Huang: Hello, everyone. This is William. Thank you for joining us on today's call. AI is transforming our business. Our sales momentum is the strongest we have ever seen. In Q2, we achieved 260 MW of new bookings, bringing our total for the H1 2026 to a record 470 MW. During the current quarter, we are well on the way to securing further major business wins with leading customers. We are confidently raising our full-year sales target to 1 GW. All of our sales agreements include a binding take-or-pay commitment.
Speaker #3: Hello, everyone. This is William. Thank you for joining us on today's call. AI is a transforming our business. Our sales momentum is the strongest we have ever seen.
Speaker #3: In the second quarter, we achieved 260 megawatts of new bookings. Bringing our total for the first half of 2026 to a record 470 megawatts.
Speaker #3: During the current quarter, we are well on the way to securing further major business wins with leading customers. We are confident today to raise our full-year sales target to $1 billion.
Speaker #3: All of our sales agreements, including a binding take-or-pay commitment—this is a metric which we disclose as bookings. The sales agreements specify delivery dates which are up to four quarters after investment, based on secure commitments.
William Huang: It is a metric which we disclose as bookings. The sales agreements specify the delivery date, which is up to four quarters after bookings. This allows us to invest based on secure commitments. Following the delivery date, there is an agreed ramp-up period, usually another four quarters, which gives us visibility to the timing of new billings.
Speaker #3: Following the delivery date, there's an agreed ramp-up period, usually another four quarters, which gives us visibility into the timing of new billings. Alongside new bookings, our customers also request us to reserve deployable capacity at the same site for their future needs.
William Huang: Alongside new bookings, our customers also request us to reserve deployable capacity at the same sites for their future needs. Reservation has become an integral part of our sales agreement. So far this year, we have secured an additional 600 megawatts of reservations from our customers. We expect to end this year with over 1 GW of new reservations. This provides us with high visibility for new orders in the next couple of years as customers convert reservations to binding commitments. China's tech giants and the emerging AI leaders are driving the adoption of advanced agentic models. This has led to a structural upgrade in the demand for computing power and AI infrastructure. GDS is uniquely positioned to address this opportunity as a result of our strategic customer relationships, presence across all key markets in China, track record of execution, and the financing capability.
William Huang: Alongside new bookings, our customers also request us to reserve deployable capacity at the same sites for their future needs. Reservation has become an integral part of our sales agreement. So far this year, we have secured an additional 600 megawatts of reservations from our customers. We expect to end this year with over 1 GW of new reservations. This provides us with high visibility for new orders in the next couple of years as customers convert reservations to binding commitments.
Speaker #3: Reservation has become an integral part of our sales agreement. So far this year, we have secured an additional 600 megawatts of reservations for our customers.
Speaker #3: We expect to end this year with over 1 gigawatt of new reservations. This provides us with high visibility for new orders in the next couple of years, as customers’ binding commitments.
William Huang: China's tech giants and the emerging AI leaders are driving the adoption of advanced agentic models. This has led to a structural upgrade in the demand for computing power and AI infrastructure. GDS is uniquely positioned to address this opportunity as a result of our strategic customer relationships, presence across all key markets in China, track record of execution, and the financing capability.
Speaker #3: China's tech giants and emerging AI leaders are driving the adoption of advanced agentic models. This has led to a structural upgrade in the demand for computing power and AI infrastructure.
Speaker #3: GDS is unique positioned to address this opportunity. As a result of our strategic customer relationships, presents across all key markets in China. Track record of exclusion and financing capability.
William Huang: The strength of our platform is clearly evidenced in the compositions of our H1 bookings. We won significant new business from each of the three largest hyperscale customers. At the same time, we started to establish relationships with a group of emerging AI leaders, which have the potential to generate incremental demand in the future. Our new business wins are diversified across the markets. For the H1 of the year, around half our bookings came from established markets and half from new markets, including Ulanqab and Suuringa in Inner Mongolia and Shaoguan in Guangdong province. We are progressing well with customers for our Zhongwei campus in Ningxia province, which is another new market. This sales success validates our differentiation resource strategy. At the midpoint of this year, we have total binding commitments for over 2 GW, plus a further 600 megawatts of reservation.
William Huang: The strength of our platform is clearly evidenced in the compositions of our H1 bookings. We won significant new business from each of the three largest hyperscale customers. At the same time, we started to establish relationships with a group of emerging AI leaders, which have the potential to generate incremental demand in the future. Our new business wins are diversified across the markets.
Speaker #3: The strength of our platform is clearly evident in the composition of our first half bookings. We won significant new business from each of the three largest hyperscale customers.
Speaker #3: At the same time, we started to establish relationships with a group of emerging AI leaders which have the potential to generate incremental demand in the future.
Speaker #3: Our new business wins are diversified across the markets. For the first half of the year, around half of our bookings came from established markets.
William Huang: For the H1 of the year, around half our bookings came from established markets and half from new markets, including Ulanqab and Suuringa in Inner Mongolia and Shaoguan in Guangdong province. We are progressing well with customers for our Zhongwei campus in Ningxia province, which is another new market. This sales success validates our differentiation resource strategy. At the midpoint of this year, we have total binding commitments for over 2 GW, plus a further 600 megawatts of reservation.
Speaker #3: And half from new markets, including Ulanzapur and Solinger in Mongolia, and Southwind in Guangdong Province. We are progressing well with customers for our Zhongwei campus in Ningxia Province.
Speaker #3: Which is another new market. This sales success validates our differentiations resource strategy. As the midpoint of this year, we have a total binding commitments for over 2 gigawatts.
Speaker #3: Plus a further 600 megawatts of reservation. On the capacity side, we have around 3 gigawatts of developable capacity which is not yet committed to under-reservation.
William Huang: On the capacity side, we have around 3 GW of developable capacity, which is not yet committed to under reservation. It is mostly in new markets. In view of our current sales momentum, we are actively adding to the deployment pipeline in the markets where demand is growing. While pursuing our ambitious target, we remain selective in terms of customers and the contract terms. We invest against binding long-term commitments from the customers, and we are committed to maintaining financial discipline. I will now pass on to Dan for the financial and operating review.
William Huang: On the capacity side, we have around 3 GW of developable capacity, which is not yet committed to under reservation. It is mostly in new markets. In view of our current sales momentum, we are actively adding to the deployment pipeline in the markets where demand is growing. While pursuing our ambitious target, we remain selective in terms of customers and the contract terms.
Speaker #3: It is mostly in new markets. In view of our current sales momentum, we are actively adding to the deployment pipeline in the markets where demand is growing.
Speaker #3: While pursuing our ambitious targets, we remain selective in terms of customers and contract terms. We invest against binding long-term commitments from customers, and we are committed to maintaining financial discipline.
William Huang: We invest against binding long-term commitments from the customers, and we are committed to maintaining financial discipline. I will now pass on to Dan for the financial and operating review.
Speaker #3: I will now pass on to Dan for the financial and operating review.
Speaker #4: Thank you, William. I'll start from the backlog build-up on slide 10. We started the current year with a backlog of 450 megawatts. By the middle of the year, our backlog had increased substantially, to 757 megawatts.
Daniel Newman: Thank you, William. I will start from the backlog buildup on slide 10. We started the current year with a backlog of 450 megawatts. By the middle of the year, our backlog had increased substantially to 757 megawatts. Based on the pricing in the contracts and our operating cost benchmarks, we estimate that we can generate RMB 2.2 million of adjusted EBITDA per megawatt on average from this backlog. Our booked but not billed adjusted EBITDA was therefore around RMB 1.6 billion. By year end, assuming we achieve our sales target, we expect the backlog to increase further to over 1 GW. Turning to slide 11. During the H1 of 2026, our net move-in was 145 megawatts. During the H2, we forecast move-in of another 90 megawatts, making 235 megawatts for the full year.
Dan Newman: Thank you, William. I will start from the backlog buildup on slide 10. We started the current year with a backlog of 450 megawatts. By the middle of the year, our backlog had increased substantially to 757 megawatts. Based on the pricing in the contracts and our operating cost benchmarks, we estimate that we can generate RMB 2.2 million of adjusted EBITDA per megawatt on average from this backlog.
Speaker #4: Based on the pricing in the contracts, and our operating cost benchmarks, we estimate that we can generate RMB 2.2 million of adjusted EBITDA per megawatt on average from this backlog.
Dan Newman: Our booked but not billed adjusted EBITDA was therefore around RMB 1.6 billion. By year end, assuming we achieve our sales target, we expect the backlog to increase further to over 1 GW. Turning to slide 11. During the H1 of 2026, our net move-in was 145 megawatts. During the H2, we forecast move-in of another 90 megawatts, making 235 megawatts for the full year.
Speaker #4: Our booked but not billed adjusted EBITDA was therefore around 1.6 billion RMB. By year-end, assuming we achieve our sales target, we expect the backlog to increase further to over 1 gigawatt.
Speaker #4: Turning to slide 11, during the first half of 2026, our net move-in was 145 megawatts. During the second half, we forecast move-in of another 90 megawatts.
Speaker #4: Making 235 megawatts for the full year. The move-in pattern over the course of 2026 reflects the timing of bookings last year. For 2027, we forecast move-in will increase substantially to more than double the number for 2026.
Daniel Newman: The move-in pattern over the course of 2026 reflects the timing of bookings last year. For 2027, we forecast move-in will increase substantially to more than double the number for 2026. The move-in will be heavily weighted to the second half of 2027. Assuming we sustain our sales momentum, 2028 should see another step-up in move-in. Turning to CapEx on slide 12. 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 pay from RMB 9 billion to RMB 10 billion, most of which is in the second half. Our plan is to continue financing new investments with around 60% debt and 40% equity at the project level.
Dan Newman: The move-in pattern over the course of 2026 reflects the timing of bookings last year. For 2027, we forecast move-in will increase substantially to more than double the number for 2026. The move-in will be heavily weighted to the second half of 2027. Assuming we sustain our sales momentum, 2028 should see another step-up in move-in. Turning to CapEx on slide 12. Our unit CapEx for the new capacity which we are constructing averages around RMB 20 million per megawatt.
Speaker #4: The move-in will be heavily weighted to the second half of 2027. Assuming we sustain our sales momentum, 2028 should see another step up in move-in.
Speaker #4: Turning to CAPEX on slide 12, our unit CAPEX for the new capacity which we are constructing averages around 20 million RMB per megawatt. As we just raised our sales target for the current year, we are also raising our guidance for CAPEX paid from 9 billion RMB to 10 billion RMB, most of which is in the second half.
Dan Newman: As we just raised our sales target for the current year, we are also raising our guidance for CapEx pay from RMB 9 billion to RMB 10 billion, most of which is in the second half. Our plan is to continue financing new investments with around 60% debt and 40% equity at the project level.
Speaker #4: Our plan is to continue financing new investments with around 60% debt and 40% equity at the project level. Assuming we can generate a stabilized cash yield on new investment of 10 to 11%, this implies leverage of around 5.5 to 6 times at the project level.
Daniel Newman: Assuming we can generate a stabilized cash yield on new investments of 10% to 11%, this implies leverage of around 5.5 to 6 times at the project level. Our primary source of debt is onshore RMB-denominated long-term bank borrowings. The onshore bank market remains highly supportive. During 2Q26 alone, we were able to complete RMB 4.9 billion of new debt financing and refinancing. For the project equity, we have various sources. We have cash of nearly RMB 20 billion on our balance sheet, and we have de-levered down to 4.7 times net debt to last quarter annualized adjusted EBITDA. We have operating cash flow, which continues to strengthen. We have our onshore asset monetization program, which we are building up in a very deliberate way. Following our successful C-REIT IPO, the first post-IPO asset injection is currently under regulatory review. Turning to slide 16.
Dan Newman: Assuming we can generate a stabilized cash yield on new investments of 10% to 11%, this implies leverage of around 5.5 to 6 times at the project level. Our primary source of debt is onshore RMB-denominated long-term bank borrowings. The onshore bank market remains highly supportive. During 2Q26 alone, we were able to complete RMB 4.9 billion of new debt financing and refinancing.
Speaker #4: Our primary source of debt is onshore RMB-denominated long-term bank borrowings. The onshore bank market remains highly supportive. During Q2 2026 alone, we were able to complete RMB 4.9 billion of new debt financing and refinancing.
Speaker #4: For the project equity, we have various sources. We have cash of nearly RMB 20 billion on our balance sheet. And we have delevered down to 4.7 times net debt to last quarter annualized adjusted EBITDA.
Dan Newman: For the project equity, we have various sources. We have cash of nearly RMB 20 billion on our balance sheet, and we have de-levered down to 4.7 times net debt to last quarter annualized adjusted EBITDA. We have operating cash flow, which continues to strengthen. We have our onshore asset monetization program, which we are building up in a very deliberate way. Following our successful C-REIT IPO, the first post-IPO asset injection is currently under regulatory review. Turning to slide 16.
Speaker #4: We have operating cash flow which continues to strengthen. And we have our onshore asset monetization program, which we are building up in a very deliberate way.
Speaker #4: Following our successful SIRIT IPO, the first post-IPO asset injection is currently under regulatory review. Turning to slide 16, we are revising upwards our full-year revenue and adjusted EBITDA guidance to reflect a more accurate financial outlook for this year.
Daniel Newman: We are revising upwards our full-year revenue and adjusted EBITDA guidance to reflect a more accurate financial outlook for this year, which includes the one-time items disclosed in 1Q26. Turning to slide 17. In order to put our H1 2026 financial performance and revised full year 2026 guidance into context, we have made some pro forma adjustments. Starting from reported revenue and reported adjusted EBITDA, we deduct the one-time items in 1Q26. For consistency, we also deduct recurring income in prior quarters, which was restructured into the one-time payment. We deduct the revenue and adjusted EBITDA contributed by the monetized assets prior to their deconsolidation. These adjustments establish a clean basis for comparison. For H1 2026, our pro forma adjusted EBITDA increased by 12.7%. Taking the midpoint of our revised guidance for full year 2026, the implied growth rate for pro forma adjusted EBITDA is 6.5%.
Dan Newman: We are revising upwards our full-year revenue and adjusted EBITDA guidance to reflect a more accurate financial outlook for this year, which includes the one-time items disclosed in 1Q26. Turning to slide 17. In order to put our H1 2026 financial performance and revised full year 2026 guidance into context, we have made some pro forma adjustments. Starting from reported revenue and reported adjusted EBITDA, we deduct the one-time items in 1Q26. For consistency, we also deduct recurring income in prior quarters, which was restructured into the one-time payment.
Speaker #4: This includes the one-time items disclosed in Q1 '26. Turning to slide 17, in order to put our first half '26 financial performance and revised full-year '26 guidance into context, we have made some pro forma adjustments.
Speaker #4: Starting from reported revenue and reported adjusted EBITDA, we deduct the one-time items in 1Q26. The consistency we also deduct recurring income in prior quarters which was restructured into the one-time payment.
Speaker #4: And we deduct the revenue and adjusted EBITDA contributed by the monetized assets prior to their deconsolidation. These adjustments establish a clean basis for comparison.
Dan Newman: We deduct the revenue and adjusted EBITDA contributed by the monetized assets prior to their deconsolidation. These adjustments establish a clean basis for comparison. For H1 2026, our pro forma adjusted EBITDA increased by 12.7%. Taking the midpoint of our revised guidance for full year 2026, the implied growth rate for pro forma adjusted EBITDA is 6.5%. We'd now like to open the call to questions. Operator?
Speaker #4: For the first half of 2026, our pro forma adjusted EBITDA increased by 12.7%. Taking the midpoint of our revised guidance for full-year 2026, the implied growth rate for pro forma adjusted EBITDA is 6.5%.
Daniel Newman: We'd now like to open the call to questions. Operator?
Speaker #4: We'd now like to open the call to questions. Operator?
Speaker #2: Thank you. We will now begin the question and answer session. To ask a question, please first start 11 on your telephone and wait for a name to be announced.
Operator: Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, please limit yourself to one question. If you have more follow-up questions, please re-enter the queue. A moment for our first question. Our first question comes from the line of Yang Liu from Morgan Stanley. Please ask your question. Yang, your line is open.
Operator: Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, please limit yourself to one question. If you have more follow-up questions, please re-enter the queue. A moment for our first question. Our first question comes from the line of Yang Liu from Morgan Stanley. Please ask your question. Yang, your line is open.
Speaker #2: To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, please limit yourself to one question. If you have more follow-up questions, please re-enter the queue.
Speaker #2: A moment for our first question. And our first question comes from the line of young Liu from Morgan Stanley. Please ask your question. Young, your line is open.
Yang Liu: Hey, thanks for the opportunity to ask question, and congratulations on the upward revision of full-year guidance. I would like to ask about the future potential move-in. I think there's a lot of debate on your customers' CapEx, and also the availability of GPU in the market, and also the constraint of computing power. We also see that you expect your move-in to improve dramatically next year. What could be the downside risk for that? If there's any concern or a delay in when customer gets the GPUs, will the take or pay contract protect GDS revenue? Thank you.
Yang Liu: Hey, thanks for the opportunity to ask question, and congratulations on the upward revision of full-year guidance. I would like to ask about the future potential move-in. I think there's a lot of debate on your customers' CapEx, and also the availability of GPU in the market, and also the constraint of computing power.
Speaker #1: Thank you for the opportunity to ask questions, and congratulations on the upward revision of the full-year guidance. I would like to ask about the future potential move-in.
Speaker #1: I think that there's a lot of debate on your customers' CAPEX and also the availability of GPU in the market and also the constraint of computing power.
Speaker #1: We also see that you expect your move-in to improve dramatically next year. What could be the downside risk for that? And if there's any concern or a delay in one customer gets the GPUs, will the take all pay contract protect GDS revenue?
Yang Liu: We also see that you expect your move-in to improve dramatically next year. What could be the downside risk for that? If there's any concern or a delay in when customer gets the GPUs, will the take or pay contract protect GDS revenue? Thank you.
Speaker #1: Thank you.
Speaker #3: Okay. Yeah. Yes. Thank you. I think the dynamic of the demands from the different dimension, I think, of course, the key driver is still the GPU.
William Huang: Okay. Yes. Thank you. I think the dynamic of the demands from the different dimension. I think the key drivers are still the GPU. I think in terms of the domestic GPU, the supply is catching up. I think it took a while in the last couple of quarters, as we mentioned. Now looks like on track to catching up. This is number one. In the meanwhile, I think they also drive a lot of traditional cloud growth. What we have seen is that new order, quite a big number is driven by the CPU. It will not impact in terms of the supply. There's no issue. I think this is a more positive. That's why we take the more positive way to look at the current or future chips supply. That's our view.
William Huang: Okay. Yes. Thank you. I think the dynamic of the demands from the different dimension. I think the key drivers are still the GPU. I think in terms of the domestic GPU, the supply is catching up. I think it took a while in the last couple of quarters, as we mentioned. Now looks like on track to catching up. This is number one.
Speaker #3: But the GPU, I think, in terms of the domestic GPU, that supplies catching up. Yeah. I think it took a while in the last couple of quarters, right?
Speaker #3: As we mentioned, but now it looks like we're on track to catching up. This is number one. In the meanwhile, I think they also drive a lot of traditional cloud growth.
William Huang: In the meanwhile, I think they also drive a lot of traditional cloud growth. What we have seen is that new order, quite a big number is driven by the CPU. It will not impact in terms of the supply. There's no issue. I think this is a more positive. That's why we take the more positive way to look at the current or future chips supply. That's our view. If you look at the other a lot of the traditional cloud business, they are still raising their capacity and the growth is very significant as well. I think let's be clear there.
Speaker #3: What we have seen is that the new order, quite a big number, is driven by the CPU. So it will not impact, in terms of the supply.
Speaker #3: It's no issue. So I think this is a very positive. So that's we take the more positive way. To look at the current or future chip supply.
Speaker #3: So that's our view. If you look at the other, a lot of these traditional cloud businesses are still raising their profit, and the growth is very significant as well.
William Huang: If you look at the other a lot of the traditional cloud business, they are still raising their capacity and the growth is very significant as well. I think let's be clear there.
Speaker #3: So, I think that—let's be clear on that.
Yang Liu: Thank you. How about the take or pay term protect GDS revenue?
Yang Liu: Thank you. How about the take or pay term protect GDS revenue?
Speaker #1: Thank you. How about the take-all-pay term? Protect the GDS revenue.
Daniel Newman: Yeah. Two comments. 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. It is up to four quarters from when the booking is disclosed. So that part I think is unchangeable. After that, there is a move-in period, and it varies from contract to contract. We have been very focused on trying to select contracts which have a shorter move-in period and a fixed commitment. For the purposes of forecasting, we assumed that the move-in will be on average over four quarters on a straight line basis. So that is what our forecast reflects. In reality, it could be faster or it could be slower, but I do not think it will materially deviate from that.
Dan Newman: Yeah. Two comments. 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. It is up to four quarters from when the booking is disclosed. So that part I think is unchangeable.
Speaker #3: Yeah.
Speaker #4: Yeah. Yeah. Two comments. The first is that in each contract, there is a specific delivery date when the capacity has to be available for move-in by the customer.
Speaker #4: And that is a fixed date in each contract. It's up to four quarters from when the booking is disclosed, so that part, I think, is unchangeable.
Dan Newman: After that, there is a move-in period, and it varies from contract to contract. We have been very focused on trying to select contracts which have a shorter move-in period and a fixed commitment. For the purposes of forecasting, we assumed that the move-in will be on average over four quarters on a straight line basis. So that is what our forecast reflects. In reality, it could be faster or it could be slower, but I do not think it will materially deviate from that.
Speaker #4: After that, there's a move-in period, and it varies from contract to contract. We've been very focused on trying to select contracts which have a shorter move-in period and a fixed commitment.
Speaker #4: For the purposes of forecasting, we assumed that the move-in will be on average over four quarters on a straight-line basis. So that is what our forecast reflects.
Speaker #4: In reality, it could be faster. Or it could be slower. But I don't think it will materially deviate from that.
Yang Liu: Thank you.
Yang Liu: Thank you.
Speaker #1: Thank you.
Speaker #2: Thank you. We will now proceed to take our next question. Our next question comes from Sarah Wong from UBS. Please ask your question, Sarah.
Operator: Thank you. We will now proceed to take our next question. Our next question comes from Sarah Wong from UBS. Please ask your question, Sarah.
Operator: Thank you. We will now proceed to take our next question. Our next question comes from Sarah Wong from UBS. Please ask your question, Sarah.
Speaker #5: Thank you for the opportunity to ask a question, and congratulations on the really solid new order signings, as just mentioned. There is increasing demand from emerging AI leaders.
Sarah Wong: Thank you for the opportunity to ask a question, and then congrats on the really solid new order signs. As Nelson just mentioned, there is increasing demand from emerging AI leaders. Just wondering, is there any difference in their demand profile or contract terms compared to established cloud or internet hyperscale customers we already served for quite some time?
Sara Wang [Equity Research Analyst: Thank you for the opportunity to ask a question, and then congrats on the really solid new order signs. As Nelson just mentioned, there is increasing demand from emerging AI leaders. Just wondering, is there any difference in their demand profile or contract terms compared to established cloud or internet hyperscale customers we already served for quite some time?
Speaker #5: So just wondering is there any difference in their demand profile or contract terms compared to established cloud or internet hyperscale customers we already served for quite some time?
William Huang: I think we are just starting to build up our relationship. So far we are very selective with some business from some new AI leader. I think in terms of their demand profile, it looks like it is getting bigger and bigger, but we are still very selective. Our main customer base, the new business, mainly driven by the hyperscale. There are a couple of larger hyperscale. But we think that they have some new customer in future. It is the right thing to do to diversify our customer base. So we just start to build some relationship with them right now. Of course their demand workload is obviously inference which we believe.
William Huang: I think we are just starting to build up our relationship. So far we are very selective with some business from some new AI leader. I think in terms of their demand profile, it looks like it is getting bigger and bigger, but we are still very selective. Our main customer base, the new business, mainly driven by the hyperscale. There are a couple of larger hyperscale. But we think that they have some new customer in future. It is the right thing to do to diversify our customer base. So we just start to build some relationship with them right now. Of course their demand workload is obviously inference which we believe.
Speaker #3: I think we are just starting to build up our relationship. So far, we are very selective sometimes—business from the new AI leader. I think, in terms of their demand profile, it looks like it's getting bigger and bigger, right?
Speaker #3: But we are still very selective. Our main customer the new business mainly driven by the hyperscale a couple of the larger hyperscale. But we think there are some new customers in future.
Speaker #3: It's the right thing to do to diversify our customer base. So we just start to build some relationship with them right now. So of course, their demands will close obviously influence.
Speaker #3: And which we believe, yeah.
Speaker #5: I see. Thank you.
Sarah Wong: I see. Thank you.
Sara Wang [Equity Research Analyst: I see. Thank you.
Speaker #2: Thank you. We will now take our next question. From the line of Frank Laughan from Raymond James and Associates. Please ask your question, Frank.
Operator: Thank you. We will now take our next question from the line of Frank Louthan from Raymond James & Associates. Please ask your question, Frank. Your line is open.
Operator: Thank you. We will now take our next question from the line of Frank Louthan from Raymond James & Associates. Please ask your question, Frank. Your line is open.
Speaker #2: Your line is open.
Frank Louthan: Great. Thank you. I wanted to get an update on what your new guidance and what does that imply for the impact of potential action with the C-REIT contribution. Does that include any of that? What would you expect that to be? How would you expect that to impact revenue and EBITDA? Then secondly, if you could just address the slowdown at MRR, how should we think about that? If we are looking forward, are you signing contracts that should be resulting in an improvement in MRR going forward? How should we think about that? Thanks.
Frank Louthan [Managing Director: Great. Thank you. I wanted to get an update on what your new guidance and what does that imply for the impact of potential action with the C-REIT contribution. Does that include any of that? What would you expect that to be? How would you expect that to impact revenue and EBITDA? Then secondly, if you could just address the slowdown at MRR, how should we think about that? If we are looking forward, are you signing contracts that should be resulting in an improvement in MRR going forward? How should we think about that? Thanks.
Speaker #6: Great. Thank you. I wanted to get an update on what your new guidance and what does that imply for the impact of potential action with the SIRI contribution.
Speaker #6: Is that include any of that? And what would you expect that to be how would you expect that to impact revenue and EBITDA? And then secondly, if you can just address the slowdown in MRR, how should we think about that?
Speaker #6: And if we're looking forward, are you signing contracts that should be resulting in an improvement in MRR going forward? How should we think about that?
Speaker #6: Thanks.
Daniel Newman: Frank, first of all on guidance, to make clear that our guidance does not take account of any further asset monetization. There is a transaction in progress under regulatory review. We cannot be any more specific about the timing of that. But to be clear, it is not factored in. For the MRR, we have provided guidance about the yield in terms of EBITDA per megawatt for the backlog and the new business that we are winning. I think that will help for forecasting. If we go back to MRR, I always make the comparison on a same quarter basis. So if we take 4Q26 compared with 4Q25, we forecast that it will be down 3% and then maybe by a similar amount next year. So part of that is the change in the location mix, because there is a substantial amount of new business in new markets.
Dan Newman: Frank, first of all on guidance, to make clear that our guidance does not take account of any further asset monetization. There is a transaction in progress under regulatory review. We cannot be any more specific about the timing of that. But to be clear, it is not factored in. For the MRR, we have provided guidance about the yield in terms of EBITDA per megawatt for the backlog and the new business that we are winning. I think that will help for forecasting.
Speaker #4: Hi. First of all, on guidance, to make clear that our guidance does not take account of any further asset monetization. There's a transaction in progress under regulatory review.
Speaker #4: We can't be any more specific about the timing of that. But to be clear, it's not factored in. For the MSR, we've provided guidance about the yield in terms of EBITDA per megawatt for the backlog and the new business that we're winning.
Speaker #4: And I think that will help for forecasting. If we go back to MSR, I've always made the comparison on a same quarter basis. So if we take four Q26 compared with four Q25, we forecast that it will be down 3%.
Dan Newman: If we go back to MRR, I always make the comparison on a same quarter basis. So if we take 4Q26 compared with 4Q25, we forecast that it will be down 3% and then maybe by a similar amount next year. So part of that is the change in the location mix, because there is a substantial amount of new business in new markets.
Speaker #4: And then maybe by a similar amount next year. So part of that is the change in the location mix because there's a substantial amount of new business in new markets.
Daniel Newman: Part of it is due to the legacy contracts, where we have about another 18 months to go, before we are through the transition of adjusting all of our contracts to the current market pricing. So our guidance this year and what we indicate in the future will fully reflect that.
Speaker #4: And part of it is due to the legacy contracts where we have about another 18 months to go before we are through the transition of adjusting all of our contracts to the current market pricing.
Dan Newman: Part of it is due to the legacy contracts, where we have about another 18 months to go, before we are through the transition of adjusting all of our contracts to the current market pricing. So our guidance this year and what we indicate in the future will fully reflect that.
Speaker #4: So, our guidance this year, and what we indicate in the future, will fully reflect that.
William Huang: Yeah. I should point out, the tier 1 market, also the new market, the current price level is quite stable. There is not a lot of transition.
William Huang: Yeah. I should point out, the tier 1 market, also the new market, the current price level is quite stable. There is not a lot of transition.
Speaker #3: Yeah. I should point out there, I mean, the Tier 1 market, and also the new market, the current price level is quite stable.
Speaker #3: There's a lot about the transition, right?
Speaker #6: Okay. Great. Thank you.
Frank Louthan: Okay, great. Thank you.
Frank Louthan [Managing Director: Okay, great. Thank you.
Speaker #2: Thank you. And our next question comes from the line of Daily Lee from Bank of America Securities. Please ask your question, Daily. Your line is open.
Operator: Thank you. Our next question comes from the line of Daley Lee from BofA Securities. Please ask your question, Daley, your line is open.
Operator: Thank you. Our next question comes from the line of Daley Lee from BofA Securities. Please ask your question, Daley, your line is open.
Daley Lee: Hi. Assassin Management, taking a question. Congrats on the opportunity for the new orders. I have one question regarding the move-in. I remember in last earnings call, we are seeing a soft move-in rate in Q2, but it seems the number is better than the marketing expectation. So what have been the key drivers for better move-in in Q2? Secondly, how do we see the demand and supply trend in the data center market in China, considering the power quota approval progress by the government? Thank you.
Daley Li [VP, Equity Research Analyst: Hi. Assassin Management, taking a question. Congrats on the opportunity for the new orders. I have one question regarding the move-in. I remember in last earnings call, we are seeing a soft move-in rate in Q2, but it seems the number is better than the marketing expectation. So what have been the key drivers for better move-in in Q2? Secondly, how do we see the demand and supply trend in the data center market in China, considering the power quota approval progress by the government? Thank you.
Speaker #7: Hi. As asset management, technical question. Congrats on the opportunity for the new orders. I have one question regarding the move-in I remember in last earnings call, we are sending soft move-in rate in Q2, but it seems that the number is better than our market expectation.
Speaker #7: So, what have been the key drivers for the better move-in during Q2, and how do we see the demand and supply trend in the data center market in China?
Speaker #7: Considering the poor quota approval progress by the government. Thank you.
Daniel Newman: Daley, I would not read anything into the quarterly fluctuations. Most of the move-in in the current year is the capacity that was booked in 2025 or even before. If you look at the bookings in 2025, we had a very strong 1Q25, then the second, third, fourth quarter were at a lower consistent level. From the 1Q this year, our bookings increased by a very large amount. That sustained in the Q2 really gave an indication for the full year that sustained. I think you can derive from that the outlook for move-in made of 2026 and 2027. We see a significant increase in move-in for the H2 2027, which is going to lead to a significant acceleration of EBITDA growth. Bruce? The third question about power.
Dan Newman: Daley, I would not read anything into the quarterly fluctuations. Most of the move-in in the current year is the capacity that was booked in 2025 or even before. If you look at the bookings in 2025, we had a very strong 1Q25, then the second, third, fourth quarter were at a lower consistent level.
Speaker #8: Thank you. I would
Speaker #4: Don't read too much into the quarterly fluctuations. Most of the move-ins in the current year are for capacity that was already booked, either in 2025 or even before.
Speaker #4: And if you look at the bookings in 2025, we had a very strong first quarter, and then the second, third, and fourth quarters were at a lower, consistent level.
Speaker #4: And then from the first quarter of this year, we're at bookings increased by a very large amount. That's sustained in the second quarter with indication for the full year that's sustained.
Dan Newman: From the 1Q this year, our bookings increased by a very large amount. That sustained in the Q2 really gave an indication for the full year that sustained. I think you can derive from that the outlook for move-in made of 2026 and 2027. We see a significant increase in move-in for the H2 2027, which is going to lead to a significant acceleration of EBITDA growth. Bruce? The third question about power.
Speaker #4: So I think you can derive from that the outlook for move-in over 2020, remainder of 2026, and 2027. We see a significant increase in move-in in the second half of 2027, which is going to lead to a significant acceleration of EBITDA growth.
William Huang: Power. Our power quota?
William Huang: Power. Our power quota?
Speaker #3: Our power quota. I think at the current power quota, there's a couple of key points. Number one, now it's a computer by the central government.
Daniel Newman: Yes.
Dan Newman: Yes.
William Huang: I think at the current power quota, there is a couple of key points. I think number one is now it is controlled by the central government and the provincial governments as well. Basically, if you apply the power, first step is to go to the municipal level to get the local government their commitment and their full support, right? Our government is quite selective right now. They try to give the market leader more allocation. That is why we have built up our land bank in the last 18 months so quick, right? Take some advantage of the GDS grant, right? Second off there, we go to the provincial level NDRC approval, then go to ask the final approval from the central government, the NDRC central government. That is the key process of how we get the power location.
William Huang: I think at the current power quota, there is a couple of key points. I think number one is now it is controlled by the central government and the provincial governments as well. Basically, if you apply the power, first step is to go to the municipal level to get the local government their commitment and their full support, right?
Speaker #3: And the municipal government as well. So basically, if you apply the power first step is to go to the municipal level because to get to the local government land commitment and their full support, right?
William Huang: Our government is quite selective right now. They try to give the market leader more allocation. That is why we have built up our land bank in the last 18 months so quick, right? Take some advantage of the GDS grant, right? Second off there, we go to the provincial level NDRC approval, then go to ask the final approval from the central government, the NDRC central government. That is the key process of how we get the power location.
Speaker #3: This is the number one question. Now, government is quite a selective right now. They are trying to keep the market leader more allocation. That's why we have built up our land bank in the last 18 months.
Speaker #3: So quickly, right? And take some advantage of the GDS grant, right? So second, then we go to the provincial level NDRC approval. Then go to us the final approval from the central government.
Speaker #3: The NDRC of the central government—that's the key process of how we get the power allocation.
Speaker #7: Thank you. Thank you.
Daley Lee: Thank you, Madison. Thank you.
Daley Li [VP, Equity Research Analyst: Thank you, Madison. Thank you.
Speaker #2: Thank you. We will now take our next question from the line of Edison Lee from Jefferies. Please ask your question at Edison. Your line is open.
Operator: Thank you. We will now take our next question from the line of Edison Lee from Jefferies. Please ask your question. Edison, your line is open.
Operator: Thank you. We will now take our next question from the line of Edison Lee from Jefferies. Please ask your question. Edison, your line is open.
Edison Lee: Hey. Thank you for taking my questions. Congrats on the good results. My question is really centering around just reconfirming the definition of the bookings and the reservations. I assume that bookings mean contracts have been signed and reservations mean that is sort of an MOU with indicated interest by the customers, and you look forward to converting that into signed contracts over the next few quarters. Is my understanding correct?
Edison Lee: Hey. Thank you for taking my questions. Congrats on the good results. My question is really centering around just reconfirming the definition of the bookings and the reservations. I assume that bookings mean contracts have been signed and reservations mean that is sort of an MOU with indicated interest by the customers, and you look forward to converting that into signed contracts over the next few quarters. Is my understanding correct?
Speaker #8: Hey. Thank you for taking my questions. So congrats on the good results. My question sorry, it's really centering around just reconfirming the definition of the bookings and the reservations.
Speaker #8: So I assume that bookings mean contracts have been signed and reservations mean that is being is sort of an MOU with indicated interest by the customers and you look forward to converting that into signed contracts over the next few quarters.
Speaker #8: Is my understanding correct?
Daniel Newman: Not exactly. What I would like to make clear is that there is a sales agreement which contains a booking, which is a contractual take or pay commitment. But within the same document, we undertake to reserve capacity to enable the customer to have certainty of being able to make commitments, typically at the same site in future or over a period of time. The bookings and the reservations go together, and that is how the customers look at it from a resource planning perspective.
Dan Newman: Not exactly. What I would like to make clear is that there is a sales agreement which contains a booking, which is a contractual take or pay commitment. But within the same document, we undertake to reserve capacity to enable the customer to have certainty of being able to make commitments, typically at the same site in future or over a period of time. The bookings and the reservations go together, and that is how the customers look at it from a resource planning perspective.
Speaker #4: Not exactly. 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.
Speaker #4: But within the same document, we undertake to reserve capacity to enable the customer to have certainty of being able to make commitments that typically at the same site in future over a period of time.
Speaker #4: So the bookings and the reservations go together. And that's how the customers look at it from a resource planning perspective.
William Huang: Yeah. In the meanwhile, I think we should say based on what the last 12 or 18 months experience, which the reservation, our customers exercise their reservation in 100% base. That is our current experience. But in terms of the case-by-case, we should have stood negotiate the move-in to China. But in general, reservation is quite a certain provider, very high certainty for our future booking.
William Huang: Yeah. In the meanwhile, I think we should say based on what the last 12 or 18 months experience, which the reservation, our customers exercise their reservation in 100% base. That is our current experience. But in terms of the case-by-case, we should have stood negotiate the move-in to China. But in general, reservation is quite a certain provider, very high certainty for our future booking.
Speaker #3: Yeah. In the meanwhile, I think we should say based on what last 12 or 18 months experience, which the reservation our customer exercise their reservation in a 100% basis.
Speaker #3: That's our current experience. But in terms of the case by face by face, we should still negotiate the move-in percent of that. But in general, reservation is quite a certain provided very, very high certainty for our future booking.
Speaker #7: Okay, so can I follow up by asking about your booking targets for this year? Right now, it's one gigawatt. I think in the last quarter, your target was still 500 megawatts.
Edison Lee: Okay. Can I follow up by asking your booking targets this year? Right now, it is 1 GW. I think in the last quarter, I think your target was still 500 megawatt. This doubling of the bookings target, I believe, is driven by your customers or your assessment of the customer's demand. Is it possible for you to split the customer's demand into training versus inference, or you have no idea how to split that?
Edison Lee: Okay. Can I follow up by asking your booking targets this year? Right now, it is 1 GW. I think in the last quarter, I think your target was still 500 megawatt. This doubling of the bookings target, I believe, is driven by your customers or your assessment of the customer's demand. Is it possible for you to split the customer's demand into training versus inference, or you have no idea how to split that?
Speaker #7: So just doubling of the bookings target I believe is driven by your customers or your assessment of the customers' demand. And is it possible for you to split the customers' demand into training versus inference or you have no idea how to split that?
Speaker #3: I think the campus like in the new markets I think they will host different workloads. It's a training plus inference. They're both. Their workloads.
William Huang: I think the campus like in the new markets, I think they will host different workloads. It is a training plus inference. They are both workloads.
William Huang: I think the campus like in the new markets, I think they will host different workloads. It is a training plus inference. They are both workloads.
Daniel Newman: Increased. Why increased?
Speaker #8: Why we increase?
William Huang: Increased the guidance? I think increased guidance is, number one, the whole market demand we see is increased. If you look at our hyperscaler, they continuously increase their CapEx, and that is in line with it. That is number one. Number two, I think GDS still maintain a lot of advantage, which is our customers prefer spend. Everybody know we step in the new growth, and we start our new business plan. I think in terms of the capital readiness, even better than the other competitors. I think the customer will more rely on that.
William Huang: Increased the guidance? I think increased guidance is, number one, the whole market demand we see is increased. If you look at our hyperscaler, they continuously increase their CapEx, and that is in line with it. That is number one. Number two, I think GDS still maintain a lot of advantage, which is our customers prefer spend. Everybody know we step in the new growth, and we start our new business plan. I think in terms of the capital readiness, even better than the other competitors. I think the customer will more rely on that.
Speaker #3: I increased the guidance. I think increased guidance is number one is the whole market demand. We see is increased. If you look at our hyperscaler, they continue to increase their capex.
Speaker #3: That's in line with it. But this is number one. Number two, I think GDS still maintains a lot of advantages, which is our customers prefer vendor. So, everybody knows we step into new growth and we start our new business plan.
Speaker #3: So I think that, in terms of capital readiness, we're even better than some of our competitors. So I think customers will rely on us more.
Edison Lee: In terms of your power reserves, can you talk about the locations of your power reserves?
Speaker #7: And in terms of your power resources, can you talk about the locations of your power resources?
Edison Lee: In terms of your power reserves, can you talk about the locations of your power reserves?
William Huang: Power what?
Daniel Newman: Yeah, the part that we identify is developable capacity that is almost entirely new markets. We have capacity in established markets, but it is under reservation. There is only a small amount in established markets that is not committed or reserved.
Dan Newman: Yeah, the part that we identify is developable capacity that is almost entirely new markets. We have capacity in established markets, but it is under reservation. There is only a small amount in established markets that is not committed or reserved.
Speaker #4: Yeah. The part we identify capacity that is almost entirely new markets. We have capacity in established markets, but it's under reservation. So there's only a small amount in established markets that is not committed or reserved.
Edison Lee: Is that very different from what you disclosed in the last quarter in terms of locations?
Speaker #7: So, is it very different from what you disclosed in the last quarter, in terms of locations?
Edison Lee: Is that very different from what you disclosed in the last quarter in terms of locations?
William Huang: We disclosed all the locations, new market, right?
William Huang: We disclosed all the locations, new market, right?
Speaker #4: No. We disclosed all the
Speaker #3: locations. New market, right? Yeah. Yeah. Yeah. Yeah. Reservation, right? Reservation including the cable market and the new market. Yeah. It's an aggregated base.
Daniel Newman: Yeah.
William Huang: Yes. Reservation, right. Reservation increase new market. Yeah. It is an aggregated base.
William Huang: Yes. Reservation, right. Reservation increase new market. Yeah. It is an aggregated base.
Daniel Newman: Yeah.
Speaker #2: Thank you. We will now move up to our next question. And our next question comes from the line of Timothy Chow from Goldman Sachs.
Operator: Thank you. We will now move up to our next question. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy. Your line is open.
Operator: Thank you. We will now move up to our next question. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy. Your line is open.
Speaker #2: Please ask your question, Timothy. Your line is open.
Timothy Zhao: Great. Thank you very much for taking that question. I think I just want to get more clarity on the move-in and how do you want to look at the revenue and EBITDA, I think, beyond this year. Just wondering if you can give us a breakdown, like for example, for this year, a lot of move-ins, what is the proportion between CPU-based and GPU-based? Into next year, it seems that you are looking for the move-in to be more than double to close to 700 MW next year. What would be that breakdown between GPU and CPU next year? With that 700 MW move-in, of course, I think the majority will be more geared toward the second half of next year.
Timothy Zhao [Equity Research Analyst: Great. Thank you very much for taking that question. I think I just want to get more clarity on the move-in and how do you want to look at the revenue and EBITDA, I think, beyond this year. Just wondering if you can give us a breakdown, like for example, for this year, a lot of move-ins, what is the proportion between CPU-based and GPU-based?
Speaker #6: Sure. Thank you much for taking that question. I think I just want to get more clarity on the move-in and how do you want to look at the revenue and EBITDA.
Speaker #6: I think beyond this year, just wondering if you can give us a breakdown, for example, for this year, a lot of move-ins, what is the proportion between CPU-based and GPU-based?
Speaker #6: And into next year, it seems that you are looking for the move-in to be more than double to close to 700 megawatts next year.
Timothy Zhao [Equity Research Analyst: Into next year, it seems that you are looking for the move-in to be more than double to close to 700 MW next year. What would be that breakdown between GPU and CPU next year? With that 700 MW move-in, of course, I think the majority will be more geared toward the second half of next year. So if that is the case, how do you think about the revenue and the EBITDA growth, I think, beyond this year in 2027 and 2028? Thank you.
Speaker #6: And what will be that breakdown between GPU and CPU next year? And with that 700 megawatts move-in, of course, I think the majority will be more geared toward the second half of the next year.
Speaker #6: So if that is the case, then how do you think about the revenue and EBITDA growth, I think, beyond this year into 2027 and 2028?
Timothy Zhao: So if that is the case, how do you think about the revenue and the EBITDA growth, I think, beyond this year in 2027 and 2028? Thank you.
Speaker #6: Thank you.
William Huang: I think it is not. In general, we do not have the current detailed number, specific number, in terms of the breakdown there. But in general, I think I can give you the general assumption. Maybe it is around 50/50.
William Huang: I think it is not. In general, we do not have the current detailed number, specific number, in terms of the breakdown there. But in general, I think I can give you the general assumption. Maybe it is around 50/50.
Speaker #4: It's not—I think it's not—in general, we don't have the current detailed number, specific number in terms of the breakdown there. But in general, I think I can give you the general, I mean, assumption—maybe around 50/50.
Speaker #7: Yeah. About growth in 2027,
Daniel Newman: About growth in 2027, we provide annual guidance. Obviously, we will not be doing that until we give the full year results in around March next year. But what you can already see is that over the course of next year, there is going to be a very significant acceleration in the growth rate from Q1, Q2, Q3 to Q4 is going to be very different. I think what really matters is where we are at the end of the year and where we are in 2028. I believe it is already a strong indication that in 2028, GDS is going to be a pretty high-growth company.
Dan Newman: About growth in 2027, we provide annual guidance. Obviously, we will not be doing that until we give the full year results in around March next year. But what you can already see is that over the course of next year, there is going to be a very significant acceleration in the growth rate from Q1, Q2, Q3 to Q4 is going to be very different. I think what really matters is where we are at the end of the year and where we are in 2028. I believe it is already a strong indication that in 2028, GDS is going to be a pretty high-growth company.
Speaker #4: yeah, we provide annual guidance. Obviously, we were doing that until we give the full year results and report in around March. Next year. But what you can already see is that over the course of next year, there's going to be a very significant acceleration in the growth rate from 1Q, 2Q, 3Q, 4Q is going to be it's going to be very different.
Speaker #4: I think what really matters is where we are at the end of the year and where we are in 2028. I believe it's already a strong indication that, in 2028, GDS is going to be a pretty high-growth company.
Speaker #6: Thank you. And if I may, I’d like to follow up on the breakdown—50/50. I’m just wondering if that refers to both this year and next year and onwards, or how that mix could change into next year?
Timothy Zhao: Thank you. May I follow up on the breakdown 50/50? Just wondering if that refers to both this year and next year and onwards, or how that mix can change in the next year.
Timothy Zhao [Equity Research Analyst: Thank you. May I follow up on the breakdown 50/50? Just wondering if that refers to both this year and next year and onwards, or how that mix can change in the next year.
Speaker #3: Yeah. Yeah. Maybe GPU will a little bit higher next year. Yeah. That's what I guess. Yeah. Based on the current domestic supply, it's catching up.
William Huang: Yeah. Maybe GPU will a little bit higher next year. That is what I guess. Based on the current domestic supply schedule, I think yeah.
William Huang: Yeah. Maybe GPU will a little bit higher next year. That is what I guess. Based on the current domestic supply schedule, I think yeah.
Speaker #3: I think they're yeah.
Speaker #2: Thank you. Due to the time limit of today's call, I would now like to turn the call back to the company for any closing remarks.
Operator: Thank you. Due to the time limit of today's call, I will now like to turn the call back to the company for any closing remarks.
Operator: Thank you. Due to the time limit of today's call, I will now like to turn the call back to the company for any closing remarks.
Speaker #5: Thank you all once again for joining us today. And see you next time.
Laura Chen: Thank you all once again for joining us today.
Laura Chen: Thank you all once again for joining us today. Until the next time.
William Huang: Thank you.
Speaker #3: Thank you.
Laura Chen: Until the next time.
William Huang: Thank you.
William Huang: Thank you.
Laura Chen: Bye.
Operator: This concludes this conference call. You may now disconnect your lines. Thank you.
Operator: This concludes this conference call. You may now disconnect your lines. Thank you.
