#China #Beijing #Data Center #VNET Group #Cloud Services

VNET Group Reports Strong Second Quarter 2025 Financial Performance

On August 21, 2025, VNET Group, Inc. (Nasdaq: VNET), a prominent provider of carrier- and cloud-neutral internet data center services in China, released its unaudited financial results for the second quarter, ending June 30, 2025. The company demonstrated a remarkable performance during this period, showcasing substantial growth in both revenue and operational capacity.

Overview of Financial Highlights

In the second quarter of 2025, VNET recorded total net revenues of RMB 2.43 billion (approximately USD 339.8 million), marking a 22.1% increase from RMB 1.99 billion in the same period of 2024. This surge in revenue was largely attributed to the continued expansion of its wholesale internet data center (IDC) business, which observed a staggering growth of 112.5%, reaching RMB 854.1 million (USD 119.2 million) compared to the previous year's figures.

Key Financial Figures:

• - Total Net Revenues: RMB 2.43 billion
• - Wholesale IDC Revenue Growth: 112.5%
• - Adjusted EBITDA: RMB 732.5 million (USD 102.2 million), a 27.7% increase year-over-year
• - Adjusted EBITDA Margin: 30.1%

The growth momentum was evident not only in revenues but also in operational capacity. VNET's wholesale capacity in service increased by 101 MW from the first quarter, totaling 674 MW. The utilized wholesale capacity also rose to 511 MW, a notable increase from 437 MW in the prior quarter. This highlights the company's effective strategy in meeting the ever-growing demand for data center services, particularly amid rising AI-driven opportunities.

Strategic Initiatives and Future Outlook

Founders and executives, led by Josh Sheng Chen, articulated their commitment to innovation with the unveiling of the Hyperscale 2.0 framework. This initiative aims to enhance VNET’s capacity management, targeting an ambitious goal of 10 GW of data center assets by 2036. This future-oriented strategy positions VNET at the forefront of the AIDC (Artificial Intelligence Data Center) evolution, emphasizing sustainability and technological advancement.

"Our innovative strategies are pivotal as we establish a competitive edge through quicker deliveries and reliable IDC services that cater to the AI era," stated Chen, reflecting on the company’s commitment to evolving with industry trends.

Operational Performance Highlights

Beyond financial metrics, VNET's operational results during the second quarter affirmed its growth trajectory:

• - Total IDC Capacity in Service: 674 MW
• - Retail IDC Capacity Utilized: 33,292 cabinets
• - Monthly Recurring Revenue per Retail Cabinet: RMB 8,915

Shareholder Value and Capital Management

In an effort to enhance shareholder confidence and value, VNET's Board of Directors approved a share repurchase program amounting to up to USD 50 million in ADS, which symbolizes the company's strong belief in its future potential and commitment to returning value to investors.

Conclusion

Looking forward, VNET is projecting total net revenues for 2025 to range between RMB 9.15 billion to RMB 9.35 billion, reflecting a year-over-year growth estimate of 11% to 13%. Meanwhile, adjusted EBITDA is expected to fall between RMB 2.76 billion to RMB 2.82 billion, indicating an anticipated growth of 14% to 16%.

As VNET Group forges ahead in this fast-evolving landscape, its robust growth strategies and strong financial performance set a promising outlook for the company's future in the internet data center industry.