• GDS recorded 263MW of new bookings in Q2, taking first-half bookings to 471MW
  • At midyear, backlog stood at 757MW and customer reservations at 600MW, while 2026 capex guidance rose to RMB10bn

The fact

GDS Holdings has raised its 2026 bookings target to 1GW after recording 263MW of new bookings in the second quarter, taking first-half bookings to 471MW. The company also had 600MW of customer reservations at 30 June and is targeting 1GW of reservations by year-end. GDS defines reservations as capacity held for specified periods for future contractual commitments.

At midyear, GDS reported 2,047MW of committed power, including 1,289MW that was already billable and a 757MW backlog. It also had 2,997MW of developable capacity still available for sale. Management said bookings carry take-or-pay commitments and delivery dates that can extend up to four quarters after signing. Customers then typically ramp up after delivery before the full contracted amount becomes billable. GDS raised its 2026 capital-expenditure guidance from RMB9bn to RMB10bn, citing stronger sales and increased data-centre development activity. Second-quarter revenue was RMB3.088bn, up 6.5% year on year.

The assessment

The 1GW target measures contracted demand, not capacity that will be operating this year. Once GDS signs a booking, it still has to deliver the corresponding data-centre capacity by the agreed date. Customers then ramp into that capacity before the full contracted amount becomes billable. Stronger bookings therefore increase the amount of infrastructure GDS has committed to deliver, rather than immediately increasing operating revenue.

Reservations are less certain. They indicate capacity customers want GDS to hold for possible future contracts, but they are not yet equivalent to the company's binding bookings. That distinction matters when GDS decides which projects to advance and how much capital to commit before additional reservations convert. For BTW readers, the 1GW target should therefore be read alongside the 757MW backlog and 600MW reservation pool. GDS has strong visibility into potential demand, but the operating outcome depends on delivering booked capacity and converting reservations into contracts without getting too far ahead of committed customers.

What to watch

Watch how much of the 600MW reservation pool converts into bookings and how quickly the 757MW backlog moves through construction, delivery and customer ramp-up. Growth in billable power will show how much contracted capacity has actually entered service. GDS's capital expenditure should also be read against those delivery milestones to see how far development is running ahead of binding customer commitments.