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BEIJING - VNET Group, Inc. (NASDAQ:VNET), a prominent player in China’s IT services sector with a market capitalization of $2.1 billion and impressive revenue growth of ~18% over the last twelve months, has secured a 40-megawatt wholesale order from a leading internet company for its new Gu’an IDC Campus in the Greater Beijing Area, the company announced Thursday.
The carrier- and cloud-neutral internet data center services provider will deliver the capacity in phases to support the customer’s core business operations. According to the company, the services will enable the customer to deploy domestic chips for its core business. InvestingPro analysis reveals VNET currently maintains a solid gross profit margin of 23.3%, though operating with a significant debt burden.
The Gu’an IDC Campus is located in Langfang City, approximately 51.4 kilometers south of downtown Beijing. The facility is designed to meet computing demands from high-tech sectors including artificial intelligence, high-performance computing, and advanced manufacturing.
"This order underscores our strong execution and ability to attract leading customers in a competitive market," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET.
The company stated it will implement advanced liquid cooling solutions for this order to lower energy consumption while optimizing power efficiency. VNET claims this will ensure the project’s annual average power usage effectiveness level outperforms the regional average.
VNET currently operates in more than 30 cities throughout China, serving over 7,000 hosting and enterprise customers across various industries from internet companies to government entities and enterprises.
The announcement was made in a press release statement from the company.
In other recent news, VNet Group Inc. reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company’s earnings per share (EPS) fell short of expectations, posting -$0.06 compared to the anticipated $0.11, resulting in a negative surprise of 154.55%. However, VNet Group surpassed revenue expectations, reporting $2.43 billion against a forecast of $2.3 billion, marking a 5.65% positive surprise. Despite the earnings miss, Jefferies has raised its price target for VNet Group from $24.23 to $25.13 while maintaining a Buy rating. The firm continues to regard VNet as a "Top Pick," although it acknowledges some near-term pressures facing the company. These recent developments provide a complex picture for investors considering VNet Group.
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