Tai Mei Ti A P P·2025-05-29 07:19Core Insights - Both Century Internet and GDS Services reported significant growth in their Q1 2025 financial results, driven by the increasing demand for computing power due to AIGC [2][3][4] - Despite the growth, challenges remain in the commercialization transformation of IDC service providers in China [2][8] Century Internet Financial Performance - Century Internet's total revenue for Q1 2025 increased by 18.3% year-on-year, reaching 2.25 billion RMB; adjusted EBITDA grew by 26.4% to 682 million RMB, with an EBITDA margin improvement of 1.9 percentage points to 30.4% [3][4] - The operational capacity of base IDC increased by 18.1% quarter-on-quarter, adding approximately 88 MW to reach 573 MW, while the rack capacity grew by 23.9% to 437 MW, marking a historical high of 84 MW in new rack capacity [3][6] - The monthly recurring revenue per cabinet in urban IDC facilities rose to 8,898 RMB, with a slight increase in the rack utilization rate to 63.7% [3][6] GDS Services Financial Performance - GDS Services reported a net income of 2.7232 billion RMB (375.3 million USD) for Q1 2025, reflecting a year-on-year growth of 12.0%; adjusted EBITDA reached 1.3238 billion RMB (182.4 million USD), up by 16.1%, with an EBITDA margin of 48.6% [4] - The total usage area of GDS data centers grew by 14.6% year-on-year, with an additional 18,687 square meters, bringing the total usage area to 462,423 square meters and a utilization rate of 75.7% [4] Strategic Focus and Differentiation - Century Internet is focusing on domestic base IDC business, while GDS Services is expanding its international presence through its newly established entity, DayOne, which aims to leverage its domestic experience to enter Southeast Asia and Japan [6][7] - DayOne has made significant progress, securing new data center contracts in Thailand and Finland, with a total expected capacity exceeding 220 MW, aiming for a total pre-signed capacity of over 750 MW by the end of 2025 [7] Commercialization Challenges - The IDC service industry in China is facing challenges in its traditional business model, with increasing price sensitivity among users leading to declining cabinet prices [8] - Both Century Internet and GDS Services are exploring new business models, including the establishment of a Pre-REITs fund by Century Internet and the issuance of asset-backed securities by GDS Services [8][9] - The potential for REITs in the data center sector remains uncertain, with experts expressing skepticism about the ability to generate attractive returns for investors in the domestic market [10][11]