On the International side, I think the sales next year could be higher than this year. And this year, including the second data center in Hong Kong, if we were able to conclude that presale precommitment during the fourth quarter, then the gross bookings for International will be about 20,000 square meters over the course of 2023. And we hope to lease that again next year. The order size has been very large on the international side. So it’s hard to predict because one order can make a huge difference. And so it’s not a widely dispersed book of orders, but it’s a small number of very large orders.
Sara Wang: Got it. Very clear. Thank you.
Operator: Thank you. [Operator Instructions] And the next question comes from the line of Michael Elias from TD Cowen. Your line is open. Please ask your question.
Michael Elias: Great. Thanks for taking the questions. Two, if I may. First, on the demand side. As we think about Mainland China, would it be possible for you to create — or provide a framework for how you’re thinking about the evolution of demand in Mainland China. Specifically, you talked earlier about, it seems like there’s some digestion that’s happening in the market. But can you talk about your conversations with your — with the cloud customers and essentially what it’s indicating is driving the slowdown in the demand there? Then my second question would be, as we think about getting ready for the AI opportunity, what is the standard density, power density to which you build your current data centers? And then as part of that, as you consider the AI deals that are on the market, what is the density that those workloads are running at? And to the earlier point, do they require liquid cooling? Any color there would be great. Thank you so much.
Dan Newman: First one was about what’s holding back demand in China? What’s the role of the cloud customers?
William Huang: Okay. I think there’s a couple of things I can say. The cloud players in China, I think now they are adjusted their strategy. I mean they are more pursue quality of the revenue. I mean not just the quantity. So this is, I think, in the midterm and long term is very good for data center per year because historically, the discretion number, including a lot of the stuff like CDN, like a network, all of the call it, integrity as a cloud. So the number is big, but also some system integration. But what we know is that those guys start to focus on the growth and real public computing revenue, which we believe this is a right strategy. And we’ll — given the time, they will grow their revenue properly and will drive the more high-quality data center demand in the future.
That’s what we see. This is the revolution from our customers. So I think this will get in the future will create more healthy data center demand for all the industry. This is number one. On the other hand, I think the AI is a hot topic in China already for a while. And China already announced a larger language model permission, right, [indiscernible] but still, in terms of timing, I think as I mentioned, it’s still a little bit early because developing schedule is behind the US. So what do we already since the global data center driven by the other US based large leverage model, this is not happening in China, but it’s coming. So I think they still need time, but in China still have another issue is supply chain issue in terms of the chips.
So I think this need maybe 12 months, maybe 18 months to solve the order issue. So what I expect is what happening in one year or one year half, maybe in a big way. The second question is the power density, of course, I think GDS is always leading the power density product in China. If we look back to 10 years ago, our first data center we build — triple high density than anyone else in the market, right? So we are very follow-up to global chain and the IT chain. So our last couple of years, we started to build very high power density. Average power density is 8 kW per rack before the last couple of years. Now we also increased to 10 kW to 15 kW per rack, that’s average number, which means we can serve 40 kW per rack is no issue for us. And again, I would say not only per rack power density we increased, also we increased each new campus power total capacity.
This will — we’re well positioned to respond to all the AI demand in the next few years. So we are ready for that.
Michael Elias: Thank you. Very helpful.
Operator: Thank you. As there are no further questions, I’d like to now turn the call back over to the company for closing remarks.
Laura Chen: Thank you once again for joining us today. If you have further questions, please feel free to contact GDS Investor Relations through the contact information on our website or the Piacente Financial Communications. See you next time. Bye.
Operator: This concludes this conference call. You may now disconnect your lines. Thank you for your participation. Have a good day.
