10 Best Performing Data Center Stocks So Far in 2025

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1. VNET Group Inc. (NASDAQ:VNET)

YTD Returns: 207.8%

Number of Hedge Fund Holders: 26

With an impressive 208% year-to-date surge in 2025, VNET Group Inc. (NASDAQ:VNET) stands as the top-performing stock in this category. The company is a leading pure-play data center provider in China, specializing in multi-carrier and multi-cloud internet data center (IDC) services. Its offerings include hyperscale and retail colocation, cloud services, and business virtual private network (VPN) services, catering to a wide range of enterprise and hyperscale clients.

The primary driver behind VNET Group Inc. (NASDAQ:VNET)’s extraordinary stock performance has been the rapid expansion of its AI-focused data center solutions to meet surging demand from hyperscalers and enterprise customers. As the exclusive operator of Microsoft Azure and Microsoft 365 services in China (via its subsidiary 21Vianet), and a key data center provider for companies like Alibaba, the company is well-positioned to benefit from increasing capital expenditures on AI infrastructure. VNET Group Inc. (NASDAQ:VNET) is strategically transitioning toward high-value, AI-driven computing services while enhancing operational efficiency to boost profitability.

As a dominant player in China’s data center industry, VNET Group Inc. (NASDAQ:VNET) continues to benefit from rising investments in scalable digital infrastructure. The company maintains a strong growth pipeline, with 297 MW of wholesale capacity currently under construction—88.4% of which is already committed under contract by customers. Additionally, it has 490 MW of capacity reserved for future expansion, ensuring it is well-prepared to capitalize on the growing demand for AI and cloud-based services.

While we acknowledge the potential of VNET to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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