VNET Group, Inc. announced strong unaudited financial results for the first quarter ended March 31, 2025, with total net revenues rising 18.3% year-over-year to RMB2.25 billion. This growth was primarily driven by the wholesale IDC business, which recorded an impressive 86.5% year-over-year revenue increase to RMB673.2 million. Adjusted EBITDA for the quarter increased by 26.4% year-over-year to RMB682.4 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points.
Operationally, wholesale capacity in service increased by 88MW quarter-over-quarter to 573MW, and wholesale capacity utilized grew by a record high of 84MW quarter-over-quarter to 437MW. The wholesale utilization rate increased by 3.6 percentage points to 76.2%, indicating rapid customer move-ins. VNET secured new orders, including a 6MW wholesale order from an intelligent driving customer and 4MW in retail orders across various industries, in addition to previously disclosed 119MW wholesale orders.
VNET further strengthened its financing capabilities, having issued US$430 million in convertible senior notes and secured a RMB500 million sustainability-linked loan at a 3.7% interest rate. The company reiterated its full-year 2025 guidance, expecting total net revenues between RMB9.10 billion and RMB9.30 billion, and adjusted EBITDA between RMB2.70 billion and RMB2.76 billion. CapEx for 2025 is still projected to be RMB10 billion to RMB12 billion to support the planned delivery of 400 to 450 megawatts.
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