GDS Holdings Limited (GDS): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of how GDS Holdings Limited (GDS) actually makes its money building the digital backbone of China, and frankly, it's a story of massive scale meeting AI demand. This business model is clearly anchored on securing prime real estate and power-think 900 megawatts secured for AI workloads-to serve hyperscale cloud providers with carrier-neutral facilities, all while executing asset monetization like the C-REIT IPO to fund the next wave of buildout. With FY 2025 revenue guidance sitting between RMB 11,290 million and RMB 11,590 million, their strategy is aggressive, so let's dive straight into the nine blocks to see exactly how they line up their Key Resources against those hefty Capex costs.

GDS Holdings Limited (GDS) - Canvas Business Model: Key Partnerships

You're looking at the relationships GDS Holdings Limited relies on to build and run its high-performance data centers across China and internationally. These partnerships are critical because GDS is capital-intensive and needs massive, reliable customers to fill that space.

Major Hyperscale Cloud Service Providers

GDS Holdings Limited's customer base is predominantly made up of hyperscale cloud service providers and large internet companies. The company's facilities are designed to be cloud-neutral, which means they can host the infrastructure for the largest PRC and global public clouds. This neutrality is a key value driver for customers needing multi-cloud strategies.

The success of these relationships is reflected in the operational scale as of September 30, 2025:

Metric	Value as of Q3 2025	Comparison to Q3 2024
Area Utilized	486,607 sqm	Increased by 10.9% Y-o-Y
Utilization Rate	74.4%	Increased from 73.6%
Net Revenue (Q3 2025)	RMB2,887.1 million (US$405.6 million)	Increased by 10.2% Y-o-Y

While GDS Holdings Limited serves major players like Alibaba Cloud and Tencent Cloud, the specific revenue breakdown by cloud provider isn't public, but the overall growth shows strong demand from this segment. The company expects accelerating demand from AI to be a significant, long-term catalyst.

Telecommunications Network Operators

Being carrier-neutral is a deliberate choice that helps GDS Holdings Limited secure its Key Resources. This neutrality allows customers to access major telecommunications networks directly within GDS facilities. This is essential for providing the low-latency connectivity that hyperscalers and large enterprises demand for their mission-critical workloads.

Financial Institutions for Debt Financing and Investment

Building data centers requires substantial capital, so relationships with global financial institutions are paramount for GDS Holdings Limited's expansion. You see this play out in their active capital management:

• In the second quarter of 2025, GDS Holdings Limited secured new debt financing and refinancing facilities totaling RMB4,451.0 million (US$621.3 million).
• During Q2 2025, the company raised an aggregate of US$676.5 million through new convertible senior notes (approx. US$534.9 million) and new equity (approx. US$141.6 million).
• As of June 30, 2025, the net debt to LQA adjusted EBITDA ratio stood at 6.1x, improving to 5.9x on a pro forma basis after a major asset monetization.
• J.P. Morgan Securities plc was involved in an ADS lending agreement dated May 27, 2025.
• An analyst from Morgan Stanley participated in the Q2 2025 earnings call.
• Major institutional investors like Coatue and The Baupost Group participated in a large Post IPO round in October 2024.

This mix of debt and equity financing, alongside asset recycling like the C-REIT IPO, shows a complex, ongoing partnership with the capital markets to fund growth.

Strategic Infrastructure Development Partners for Expansion

GDS Holdings Limited has a key strategic relationship through its equity stake in its international arm. GDS holds a non-controlling 35.6% equity interest in DayOne Data Centers Limited, which develops and operates data centers in international markets. DayOne is reportedly working on a Series C equity raise, which further solidifies this development pipeline outside of GDS's core China operations.

Global Technology Equipment Manufacturers

While specific 2025 contracts aren't detailed in the latest reports, GDS Holdings Limited's operational requirements necessitate strong ties with equipment suppliers for high-density, high-power capacity builds. The company's focus on AI demand suggests deep collaboration with manufacturers of advanced compute and cooling technologies. Furthermore, the confirmation of KPMG Huazhen LLP as the independent auditor for the fiscal year ending December 31, 2025, is a crucial governance partnership ensuring financial reporting integrity.

Finance: review the impact of the Q2 2025 debt raise on the Q3 2025 interest expense line item by next Tuesday.

GDS Holdings Limited (GDS) - Canvas Business Model: Key Activities

You're looking at the core engine of GDS Holdings Limited-what they actually do to generate that revenue. As a seasoned analyst, I can tell you the key activities here are all about scale, speed, and smart financing, especially with the AI boom hitting hard.

Developing and constructing high-performance data centers.

This is the foundational work, building the physical assets. GDS Holdings Limited focuses on facilities with large net floor area, high power density, and multiple redundancies. They are actively building out capacity to meet the surging demand, particularly from hyperscalers.

Here are some capacity metrics as of mid-2025:

Metric	Q2 2025 End	Q3 2025 End	Year-over-Year Change
Area in Service (sqm)	618,060	N/A (Q3 data not fully specified, but utilization improved)	6.5% increase (as of Q2 2025)
Area Under Construction (sqm)	132,235	N/A	12.2% increase (as of Q2 2025)
Gross Additional Area Utilized (Q3 2025)	N/A	~23,000 sq m	N/A

They are on track to achieve their highest ever year of move-ins, delivering on a large backlog. For instance, they were delivering a 40,000 square meter (or 152 MW) order won in the first quarter of 2025 during Q3. That's a tangible output from their construction pipeline.

Operating and maintaining mission-critical data center infrastructure.

Once built, the activity shifts to keeping the lights on and the servers cool for their customers. This is measured by utilization and efficiency, which directly impacts profitability metrics like Adjusted EBITDA margin.

The operational performance as of September 30, 2025, shows solid uptake:

• Area utilized reached 486,607 square meters.
• The utilization rate improved to 74.4%, up from 73.6% a year prior.

Financially, this operational efficiency is clear in the Q3 2025 results where Net revenue was RMB 2,887.1 million (US$405.6 million), and the Adjusted EBITDA margin hit 46.5%. Honestly, that margin improvement shows they are managing costs well as capacity ramps.

Securing and preparing land with high power capacity for AI demand.

This is the forward-looking activity, securing the fuel-power-for the next wave of growth, which is overwhelmingly AI-driven. GDS Holdings Limited is positioning itself aggressively here.

They have secured a significant land bank:

• Total powered land bank in and around Tier 1 markets is around ~900 MW.

The demand is clearly AI-focused; management noted that around ~65% of their 2025 bookings are tied to AI workloads. They expect 2026 bookings to exceed 2025, suggesting this land bank is critical for future deployment.

Delivering colocation and value-added managed services.

GDS Holdings Limited is carrier- and cloud-neutral, meaning they offer the space (colocation) and the necessary connectivity services. This includes managed hybrid cloud access and managed network services.

The revenue growth reflects this delivery:

• Q3 2025 Net Revenue increased 10.2% year-over-year.
• For the first nine months of 2025, pro-forma Adjusted EBITDA growth was 15.4% year-over-year.

Their international venture, DayOne Data Centers Limited, is also a key part of service delivery outside China, with revenue up 172.9% year-over-year in Q3 2025.

Executing asset monetization strategies like the C-REIT IPO.

This is the financial engineering activity, designed to recycle capital to fund new development without overburdening the balance sheet. The China REIT (C-REIT) was a major milestone.

Key figures from the C-REIT execution:

Monetization Event/Metric	Value/Figure
C-REIT IPO Trading Start Date	August 8, 2025
Net Cash Proceeds from C-REIT IPO	RMB 2.25 billion (US$315.8 million)
C-REIT Unit Price Increase (as of Nov 18, 2025)	45.8% above IPO price
Implied EV/EBITDA Multiple (C-REIT IPO)	16.9 times
Target Enterprise Value for First Post-IPO Injection	RMB 4 billion to RMB 6 billion

This strategy is working to de-leverage; Net debt to annualized adj. EBITDA improved to 6.0x at Q3 2025 from 6.8x at the end of 2024. For the first nine months of 2025, operating cash flow of ~RMB 2.5 billion nearly covered the net organic capex of ~RMB 2.7 billion after factoring in these monetization proceeds, making the China business nearly self-funding. That's a defintely powerful shift in capital structure.

GDS Holdings Limited (GDS) - Canvas Business Model: Key Resources

You're looking at the core assets that let GDS Holdings Limited operate and grow, especially in this AI-driven market. Honestly, it boils down to physical space, power commitments, and the cash to keep building. Here's what their balance sheet and operational reports show as of late 2025.

Extensive portfolio of data centers in Tier 1 Chinese cities

GDS Holdings Limited has built out a significant physical footprint, concentrated where the demand from hyperscalers and large internet companies is highest. You can see the scale of their in-service capacity as of the second quarter of 2025. This physical asset base is the foundation for their revenue generation.

Here are the key metrics for their data center resources as of mid-2025:

Metric	Value (as of Q2 2025)	Value (as of Q3 2025)
Area in Service (sqm)	618,060 sqm	Data not explicitly provided for Q3, but Q2 is the latest full figure.
Area Utilized (sqm)	479,186 sqm	Data not explicitly provided for Q3.
Utilization Rate (Area Utilized / Area in Service)	77.5%	Data not explicitly provided for Q3.
New Customer Commitments (China, 1H25)	33,962 sqm	N/A
Total New Bookings (Year-to-Date)	N/A	240 MW

The momentum in bookings is strong; by the end of Q3 2025, GDS Holdings Limited had secured 240 MW in new orders year-to-date, signaling strong near-term demand conversion.

Secured land and power capacity, including 900 megawatts for AI

The real strategic asset here is the forward-looking capacity they've locked down. GDS Holdings Limited has secured 900 MW of power and land specifically in Tier-1 Chinese markets, positioning them to capture the next wave of AI data center demand. This pre-positioning mitigates the risk of land and power scarcity that affects competitors. Furthermore, their international arm, DayOne Data Centers, is also scaling aggressively, with total committed power exceeding >780 MW as of Q2 2025.

Carrier-neutral and cloud-neutral network architecture

GDS Holdings Limited operates with a network architecture that is both carrier-neutral and cloud-neutral. This means their facilities allow customers to connect to the major telecommunications networks and the largest PRC and global public clouds hosted within their sites. This flexibility is a key selling point for enterprise and hyperscale customers needing multi-cloud access.

Proprietary data center design and operational expertise

The company relies on its 24-year track record of service delivery in China. This translates into proprietary data center design and operational expertise, which supports high power density and efficiency across all critical systems. This expertise is what allows them to command strong margins, with an Adjusted GP margin (non-GAAP) of 51.0% in Q3 2025.

Cash and financing flexibility, with cash at RMB 13,443.7 million (Q3 2025)

Liquidity remains a core resource, especially for funding ongoing development. As of September 30, 2025, GDS Holdings Limited reported cash on hand of RMB 13,443.7 million (US$1,888.4 million). This financial flexibility was bolstered by the C-REIT transaction in Q3, from which GDS received cash consideration of RMB2,247.9 million (US$315.8 million) net of transaction costs. For the first nine months of 2025, operating cash flow was approximately RMB 2.5 billion. This strong cash position, combined with the C-REIT structure, moves the company closer to a self-funding growth model.

You should keep an eye on how they deploy this cash, particularly into the DayOne segment, which saw revenue jump 172.9% y/y to RMB 991 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

GDS Holdings Limited (GDS) - Canvas Business Model: Value Propositions

You're looking at the core offerings GDS Holdings Limited is putting forward to the market as of late 2025. It's all about scale, efficiency, and being the right partner for the AI wave.

High-performance, secure, and reliable data center infrastructure.

The infrastructure is built for density and efficiency, which matters when power-hungry AI workloads arrive. You see this reflected in the operational metrics as of September 30, 2025. The company's average Power Usage Effectiveness (PUE) was optimized to an industry-leading level of 1.24 by the end of 2024, directly supporting high-power-density needs. Furthermore, 40% of renewable energy usage was achieved by 2024, aligning with client low-carbon procurement needs. The utilization of existing space shows disciplined management.

• Area in service as of September 30, 2025: 653,762 sqm
• Area utilized as of September 30, 2025: 486,607 sqm
• Utilization rate (Area utilized / Area in service): 74.4%

This operational discipline helped drive Q3 2025 Adjusted EBITDA margin to 46.5%.

Scalable colocation solutions for hyperscale cloud growth.

GDS Holdings Limited is clearly scaling its footprint to meet the massive requirements from hyperscalers. The total area committed and pre-committed reached 656,729 sqm by September 30, 2025. The momentum from new business is strong, with total new orders for the data center business reaching 240 megawatts in the first nine months of 2025, with expectations to approach 300 megawatts for the full year.

Metric (as of Sep 30, 2025)	Value	Year-over-Year Change
Total Area Committed & Pre-committed	656,729 sqm	4.8% increase
Area Utilized	486,607 sqm	10.9% increase
Net Additional Area Utilized (Q3 2025)	7,421 sqm	N/A

You'll note that even with new capacity coming online, the utilization rate held steady at 74.4%, showing they are managing the ramp-up effectively.

Carrier and cloud-neutral access for maximum customer flexibility.

GDS Holdings Limited offers facilities that provide access to major telecommunications networks and public clouds. This neutrality is a key feature for customers building complex, multi-cloud architectures.

Strategic positioning to capture accelerating AI-driven demand.

The company is explicitly targeting the AI boom. For the full year 2025 bookings, approximately 65% are tied to AI workloads. This focus is supported by significant available power capacity. Management noted they will still have around 900 megawatts of developable capacity after completing a 152-megawatt new order. The 2025 full-year guidance remains firm, projecting total revenues between RMB 11.29 billion to RMB 11.59 billion and Adjusted EBITDA between RMB 5.19 billion and RMB 5.39 billion.

Managed hybrid cloud and network services for complex IT needs.

The growth in their international platform, DayOne Data Centers, shows their capability in delivering services beyond core colocation. For the first nine months of 2025, DayOne's revenue grew 172.9% year-over-year to RMB 991 million, with Adjusted EBITDA surging 348.8% year-over-year to RMB 427 million. That's defintely a sign of rapid service adoption.

GDS Holdings Limited (GDS) - Canvas Business Model: Customer Relationships

GDS Holdings Limited's customer relationships are centered on deep integration with large, demanding enterprise clients, evidenced by their operational scale as of late 2025.

Dedicated account management for long-term, sticky contracts.

• Customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations.
• GDS Holdings Limited has a 24-year track record of service delivery, successfully fulfilling requirements for demanding customers in China.
• Management noted in March 2025 that selected new deals feature contract lengths that are much longer than before.

The stickiness is reflected in high commitment levels across their capacity:

Metric	Date	Value
Area Utilized (sqm)	June 30, 2025	479,186
Utilization Rate (Area Utilized / Area in Service)	June 30, 2025	77.5%
Total Area Committed and Pre-committed (sqm)	June 30, 2025	663,959
Net Revenue (RMB million)	Q3 2025	2,887.1

High-touch, consultative sales for large-scale deployments.

The focus is on large deployments, as seen by the total area committed and pre-committed reaching 663,959 sqm as of June 30, 2025. This scale necessitates a consultative approach to meet the specific density and power requirements of hyperscale clients.

Technical support and service delivery teams for 24/7 operations.

• GDS Holdings Limited offers co-location and a suite of value-added services.
• Value-added services include managed hybrid cloud services through direct private connection to leading public clouds.
• The company maintains a carrier and cloud-neutral position, enabling customer access to major telecommunications networks and the largest PRC and global public clouds hosted in their facilities.

Building multi-year, strategic partnerships with anchor tenants.

Strategic partnerships are formalized through significant capital structure events. In March 2025, GDS Holdings Limited executed a private REIT (P-REIT) transaction where China Life Insurance Company Limited participated as an anchor investor. GDS Holdings Limited reinvested RMB 480 million to subscribe for a 20% stake in the resulting China REIT (C-REIT), which began trading on the Shanghai Stock Exchange on August 8, 2025. GDS Holdings Limited continues to operate and manage the underlying data center assets for the C-REIT under a services agreement, for which GDS will receive recurring annual fee income of approximately RMB 5 million.

Finance: draft 13-week cash view by Friday.

GDS Holdings Limited (GDS) - Canvas Business Model: Channels

You're looking at how GDS Holdings Limited gets its services-high-performance data center capacity and managed services-to its customers. It's a multi-pronged approach that mixes direct enterprise sales with financial market access for capital deployment.

The core sales engine relies heavily on its in-house team. Sales activities are primarily driven by the direct sales force, which is organized across four main geographic regions within China:

• Northern China
• Southern China
• Eastern China
• South-western China

As of July 1, 2024, the total employee count at GDS Holdings Limited was between 1,001 - 5,000, supporting this direct engagement model with large enterprise and cloud customers. This team works to secure commitments from hyperscale cloud providers, large internet companies, and financial institutions.

For cloud customers, GDS Holdings Limited channels service delivery through direct private connections to leading public cloud platforms. This supports their co-location and value-added services, including managed hybrid cloud access. The operational success of this channel is reflected in capacity utilization. As of June 30, 2025, the utilization rate for area in service was 77.5%, with total area utilized reaching 479,186 sqm. New customer commitments in China for the first half of 2025 (1H25) totaled 33,962 sqm.

Accessing capital markets is a key channel for funding growth, especially for international expansion. GDS Holdings Limited maintains its listing presence on both the NASDAQ and HKEX (stock codes GDS and 9698, respectively). A significant recent financial channel was the successful completion of its China REIT (C-REIT) IPO on the Shanghai Stock Exchange in August 2025, which achieved implied cap rates of below 5%. This monetization strategy is paired with direct capital raises; for instance, in May 2025, the company priced an offering of 2.25% convertible senior notes due 2032 for an aggregate principal amount of US$500 million, which was increased from an initial target of $450 million. In the second quarter of 2025, GDS Holdings Limited raised net proceeds of USD 676m through new convertible senior notes and equity.

International expansion channels are managed through its equity investment in DayOne Data Centers Limited. GDS Holdings Limited holds a 35.6% equity interest in DayOne, which operates outside of mainland China. DayOne is showing hyper-growth; in Q2 2025 alone, it added 246 MW of new customer commitments, pushing its total committed power to over 780 MW. This translated to a revenue growth of 244% y/y and adjusted EBITDA growth of 265% y/y for DayOne in that quarter. To support this, GDS Holdings Limited sought a US$3.4bn loan in March 2025 specifically for its Malaysia operations and Southeast Asia build-out.

Here's a quick look at some of the key operational and financial metrics tied to these channels as of late 2025:

Metric Category	Channel/Area of Focus	Latest Reported Figure (As of late 2025)
Financial Performance (Core)	Q3 2025 Net Revenue	RMB2,887.1 million
Financial Performance (Core)	Q3 2025 Adjusted EBITDA	RMB1,342.2 million
Capacity Utilization	Area Utilized (as of June 30, 2025)	479,186 sqm
Capacity Utilization	Utilization Rate (as of June 30, 2025)	77.5%
International Expansion (DayOne)	DayOne Total Committed Power	>780 MW
International Expansion (DayOne)	GDS Equity Stake in DayOne	35.6%
Capital Markets	C-REIT Implied Cap Rate	Below 5%
Capital Markets	May 2025 Convertible Notes Principal	US$500 million

The direct sales force is incentivized through performance-based bonuses tied to annual targets. The C-REIT structure provides a channel to recycle capital from stabilized assets, as seen by the RMB2,073 million net cash proceeds GDS was entitled to from a July 2025 deconsolidation transaction.

Finance: draft 13-week cash view by Friday.

GDS Holdings Limited (GDS) - Canvas Business Model: Customer Segments

GDS Holdings Limited's customer base is concentrated around the largest consumers of high-performance, high-density data center capacity in China and increasingly, internationally through DayOne Data Centers Limited.

Hyperscale cloud service providers represent the largest segment of GDS Holdings Limited's clientele. These providers, which include the dominant global players like AWS, Microsoft Azure (with Q2 2025 global market shares of approximately 30% and 20% respectively), and Google Cloud, drive the demand for massive, scalable infrastructure. GDS Holdings Limited's facilities are designed to meet the exacting standards of these partners, offering carrier- and cloud-neutral access to major public clouds hosted within their sites.

The core customer segments GDS Holdings Limited serves in China include:

• Hyperscale cloud service providers (the largest segment).
• Large internet companies, such as e-commerce and content platforms.
• Financial institutions requiring high-security, low-latency infrastructure.
• Telecommunications providers.

The operational performance in late 2025 reflects this demand concentration. For the third quarter ended September 30, 2025, GDS Holdings Limited reported net revenue of RMB2,887.1 million (US$405.6 million). The company confirmed its full-year 2025 total revenue guidance remained in the range of RMB11,290 - RMB11,590 million. New bookings year-to-date by the end of Q3 2025 reached 240 MW, with a full-year target of approximately 300MW, largely driven by AI demand.

The expansion into international markets is executed via DayOne Data Centers Limited, in which GDS Holdings Limited holds a non-controlling 35.6% equity interest as of early 2025. DayOne's growth performance is significantly outpacing the core business; for Q3 2025, DayOne's revenue was RMB991 million, representing a 172.9% year-over-year increase, with Adjusted EBITDA reaching RMB427 million, up 348.8% year-over-year.

The following table summarizes key capacity and financial metrics relevant to GDS Holdings Limited's customer-facing operations as of late 2025:

Metric	Value	Period/Context
GDS Holdings Limited Q3 2025 Net Revenue	RMB2,887.1 million (US$405.6 million)	Quarter ended September 30, 2025
GDS Holdings Limited 2025 Full Year Revenue Guidance	RMB11,290 - RMB11,590 million	Full Year 2025 Forecast
DayOne Data Centers Capacity (In Service or Under Construction)	480 MW	As of late 2025
DayOne Data Centers Capacity (Reserved for Future Development)	590 MW	Across Hong Kong, Singapore, Malaysia, Indonesia, and Japan
DayOne Data Centers Q3 2025 Revenue	RMB991 million	Up 172.9% year-over-year
GDS Capital Expenditure Guidance (Revised)	Approximately RMB2,700 million	Full Year 2025

The expansion into Southeast Asia markets via DayOne Data Centers is strategically targeting new customer bases, with DayOne having broken ground on a 20MW data center in Singapore designed for AI workloads, expected to go live in 2026. Furthermore, in March 2025, GDS Holdings Limited sought a US$3.4bn loan specifically to support capital expenditure and refinancing for its Malaysia operations, particularly its Johor campus build-out. DayOne is independently seeking to raise more than US$1 billion in a Series C funding round, which could value the entity between US$4 billion and US$5 billion.

The customer base for GDS Holdings Limited in China is characterized by high commitment levels, as evidenced by the 110,000 square meters of backlog for area in service at the start of 2025, with over half expected to be delivered during the year. The company ended 2024 with a utilization rate of 74%, expecting this to increase to the high 70s% by the end of 2025.

GDS Holdings Limited (GDS) - Canvas Business Model: Cost Structure

The cost structure for GDS Holdings Limited is heavily weighted toward capital deployment and the ongoing operational expenses of running high-density data centers.

High capital expenditure (Capex) for new data center construction is a primary driver of costs, reflecting the continuous need to build capacity to meet hyperscale demand.

The company revised its full-year FY 2025 Capex guidance (net) down to approximately RMB 2,700 million. This revision followed the completion of the C-REIT transaction, which was not factored into the initial guidance of around RMB 4,300 million. The organic Capex component for 2025 was stated as approximately RMB 4,800 million. The net guidance of RMB 2,700 million is derived after deducting net proceeds from the ABS and C-REIT transactions. This is a significant outlay for future capacity.

Significant power and utility costs for data center operation are a major variable cost, directly tied to the utilization and power draw of the deployed capacity. While specific power and utility costs are not broken out, the Cost of Revenue for the third quarter of 2025 was RMB 2,247.9 million. The company reported that in 2024, its renewable energy usage ratio increased to 40%, indicating efforts to manage utility costs and sustainability targets. The utilization rate for area in service reached 77.5% at the end of the second quarter of 2025.

Depreciation and amortization of long-lived assets is a substantial non-cash charge reflecting the massive investment in physical infrastructure. For the third quarter of 2025, the depreciation and amortization expense component excluded from General and administrative expenses was RMB 59.9 million. For the three-month period ended March 31, 2025, total depreciation and amortization was RMB 856.5 million.

Interest expense on substantial debt financing is another key cost, necessary to fund the high Capex requirements. Net interest expenses for the third quarter of 2025 were RMB 375.5 million. This compares to RMB 405.0 million in the second quarter of 2025 and RMB 441.5 million in the first quarter of 2025. The year-over-year decrease in Q3 2025 was attributed to a lower level of total borrowings and lower interest rates.

Here are the key financial figures related to the cost structure from recent reporting periods:

Cost Component	Period/Guidance	Amount (RMB Million)
Net Capex Guidance (FY 2025)	Full Year 2025 Guidance	2,700
Cost of Revenue	Q3 2025	2,247.9
Net Interest Expenses	Q3 2025	375.5
Depreciation and Amortization (Component)	Q3 2025	59.9
Organic Capex (FY 2025)	Full Year 2025 Guidance Basis	4,800

The cost structure also includes other operational expenses that support the business model:

• Selling and marketing expenses (Q3 2025, excluding share-based compensation): RMB 31.1 million.
• Research and development costs (Q3 2025): RMB 8.3 million.
• Total cash operating costs as a percentage of net revenue contributed to the Adjusted GP margin of 51.0% in Q3 2025.

GDS Holdings Limited (GDS) - Canvas Business Model: Revenue Streams

You're looking at how GDS Holdings Limited actually brings in the money, which is key for any valuation, defintely. For a data center operator like GDS Holdings Limited, revenue streams are pretty straightforward, but the C-REIT deal adds an interesting, non-recurring component to the mix right now.

The core of GDS Holdings Limited's income comes from its physical infrastructure and the services wrapped around it. Think of it as renting out premium, highly-connected real estate designed for servers.

• Colocation services fees (primary revenue source). This is the bread and butter; it's the recurring fee for housing and powering a client's IT equipment in GDS Holdings Limited's facilities.
• Managed hosting and value-added services fees. This covers the extra work GDS Holdings Limited does, like managing the client's infrastructure, network services, or offering specialized cloud connectivity solutions.

Now, let's talk about that big asset monetization event. This isn't a regular monthly charge, but a significant cash event from restructuring assets. GDS Holdings Limited executed a breakthrough deal by selling a portion of its assets into a private REIT structure, which then fed into a public C-REIT.

The asset monetization proceeds from the C-REIT transactions are a major highlight for recent financial performance. Here's the quick math on that specific cash inflow:

• GDS Holdings Limited is set to receive RMB 2,111 million in net cash proceeds from the sale of a project company holding stabilized data centers as part of the C-REIT structure.
• Even after the sale, GDS Holdings Limited retains an operational revenue stream by managing the underlying data center assets for an annual fee of approximately RMB 5 million.

To keep you current on the top-line performance, here are the latest official figures we have for GDS Holdings Limited's revenue expectations and recent actuals. This gives you the context for how the core business is tracking against the full-year plan.

Metric	Value	Period/Context
FY 2025 Total Revenue Guidance	RMB 11,290 million - RMB 11,590 million	Full Year 2025 Estimate
Q3 2025 Net Revenue	RMB 2,887.1 million	Third Quarter 2025 Actual

The Q3 2025 Net Revenue of RMB 2,887.1 million shows the underlying business is growing, which was reported as a 10.2% increase year-over-year, mostly from the continued ramp-up of their data centers. Still, remember that the C-REIT cash proceeds are separate from this recurring revenue line, though they certainly impact the overall financial picture for the year.