Goldman Sachs Names Top Picks in China's Data Center Market

Goldman Sachs has reaffirmed its positive outlook on select operators in China’s data center sector, highlighting GDS Holdings, VNET Group, and Range Intelligent as key investment opportunities. In a recent note, the firm's analysts adjusted some near-term forecasts to reflect evolving market conditions but pointed to upcoming order announcements and strategic partnerships as significant catalysts.

Analyst Ratings and Forecasts

Goldman Sachs updated its price targets and estimates for several key players, signaling confidence in their long-term prospects despite short-term headwinds.

• GDS Holdings (GDS): The firm maintained its Buy rating but lowered its 12-month price target to $46 for U.S.-listed shares and HK$45 for Hong Kong-listed shares. Analysts expect GDS's second-quarter revenue to reach 3.07 billion yuan, about 2% below consensus, while adjusted EBITDA is projected at 1.34 billion yuan, or 2% above consensus.
• VNET Group (VNET): VNET also retains a Buy rating with a $16 price target. Goldman Sachs lowered its second-quarter revenue estimate for the company by 3% to 2.77 billion yuan, citing slower customer move-in activity. However, its adjusted EBITDA forecast remains unchanged at 927 million yuan, representing a 26% year-over-year increase.
• Range Intelligent: Among A-share operators, Range Intelligent remains Goldman's preferred pick. The firm kept its estimates and price target unchanged, highlighting the company's substantial capacity reserves, AI data center capabilities, and diverse financing options as key competitive advantages.

Ad

Market Catalysts and Outlook

Analysts are closely watching for specific developments that could drive stock performance in the coming months. The market has likely already priced in a potential 500 megawatt order volume for GDS in the first half of 2026, following positive management commentary, with further updates anticipated in July and August.

For VNET, investors are awaiting more details on its strategic collaboration with battery giant CATL and its plans for overseas expansion. These initiatives are viewed as crucial for the company's next phase of growth. Goldman Sachs' analysis suggests that while near-term capacity utilization trends have prompted forecast adjustments, the underlying demand for data services, particularly driven by AI, continues to support a constructive view on the sector's leaders.