10 Best Performing Data Center Stocks So Far in 2025

2. GDS Holdings Limited (NASDAQ:GDS)

YTD Returns: 88.4%

Number of Hedge Fund Holders: 32

GDS Holdings Limited (NASDAQ:GDS) is a leading provider of high-performance, carrier- and cloud-neutral data center and IT infrastructure services across China and Southeast Asia. The company offers a broad range of solutions, including colocation, managed hosting, managed cloud services, and other value-added IT services. Its diverse clientele includes hyperscale cloud providers, large internet firms, financial institutions, telecommunications carriers, IT service providers, and major enterprises.

GDS Holdings Limited (NASDAQ:GDS) has seen an impressive stock performance in 2025, surging over 88% year-to-date to reach $44.8. This follows a remarkable 161% rally in 2024, making the continued upward momentum even more noteworthy. On February 21, Raymond James analyst raised the stock’s price target from $25 to $53 while maintaining an Outperform rating, citing expectations for more stable growth and significantly reduced risk.

The company benefits from strong demand for digital infrastructure in China, driven by AI adoption, cloud computing expansion, and enterprise digital transformation initiatives. GDS has been actively growing its data center footprint in key Chinese cities while also expanding internationally, particularly in Southeast Asia. Its international subsidiary, DigitalLand Holdings Limited, recently secured a $1.0 billion investment in convertible preferred shares from institutional private equity investors, valuing the business at approximately $3.5 billion. The capital infusion is expected to accelerate GDS Holdings Limited (NASDAQ:GDS)’s global expansion.

Following the Q3 2024 earnings release in mid-November, William Huang, Chairman and CEO of GDS, highlighted the company’s growth strategy, stating:

“In China, the accelerated move-in trend continued, as we executed our strategy of delivering the backlog while being selective on new orders. Internationally, our recent equity raise is a major step forward and positions us well to capture the tremendous opportunities for growth in the international markets.”