GDS Holdings Limited announced a definitive agreement to repurchase $385 million of ordinary shares in its minority investment in Singapore‑based DayOne Data Centers Limited. The repurchase price of $11.18 per share matches the price of DayOne’s recently announced Series C convertible preferred share issue, allowing GDS to recycle roughly 95 % of its original $400 million investment at a multiple of about 6.5 times money.
The transaction reduces GDS’s equity stake in DayOne to a smaller minority position, estimated to be around 24 % on a fully diluted basis. The repurchase frees up capital that GDS plans to deploy in its core China data‑center business, where demand for AI‑driven workloads is accelerating. GDS’s management highlighted that the move strengthens its balance sheet and positions the company to capture high‑return opportunities in China’s rapidly expanding data‑center market.
GDS’s Q3 2025 results showed a 10.2 % year‑over‑year increase in net revenue to RMB 2,887.1 million (US$405.6 million) and a net income of RMB 728.6 million (US$102.4 million), reversing a net loss in the prior year’s quarter. The repurchase aligns with this positive financial trajectory, providing liquidity that can be used to scale AI‑centric data‑center capacity and pursue strategic acquisitions or capacity expansions in China.
Management emphasized that the repurchase is part of a broader strategy to monetize non‑core assets and focus on high‑growth segments. Chairman and CEO William Huang noted, “We are well positioned to capture new business opportunities arising from AI, and this transaction strengthens our financial position to invest in China’s core operations.” The move is expected to enhance GDS’s ability to meet the growing demand for data‑center capacity in China, where the company has secured 900 MW of capacity specifically for AI workloads.
DayOne’s Series C round, which raised over $2 billion led by Coatue and supported by the Indonesia Investment Authority, is aimed at expanding operations in Europe and Asia‑Pacific. The repurchase price matching the Series C price reflects DayOne’s strong valuation and investor confidence, and it provides GDS with a favorable exit from a high‑growth but non‑core investment.
The transaction is expected to have a positive impact on GDS’s cash flow and capital structure, reducing debt leverage and improving liquidity. By reallocating capital to its core China business, GDS aims to accelerate growth in a market that is experiencing robust demand for AI‑driven data‑center services.
The repurchase also signals confidence in DayOne’s growth prospects, as the company continues to secure significant funding to expand its global footprint. GDS’s strategic focus on China aligns with broader industry trends toward localized data‑center infrastructure to support AI and cloud services.
Overall, the repurchase represents a significant capital‑allocation decision that strengthens GDS’s balance sheet, supports its core business growth, and reflects confidence in the long‑term demand for data‑center capacity in China.
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