VNET Delivers Record IDC Capacity and Surpasses Guidance: Wholesale Momentum Powers 2025 Results
Strong IDC Growth: Record 404MW Delivered, Wholesale Revenues Surge 77%
VNET Group, a leading carrier- and cloud-neutral internet data center provider in China, closed 2025 with strong performance across its core segments. The company delivered a record 404MW of data center capacity, securing new wholesale orders of 135MW in Q4 and bringing total capacity in service to 889MW by year-end. Wholesale IDC revenues rose 77.4% to RMB3.46 billion, driving total net revenues to RMB9.95 billion—a 20.5% year-over-year increase, beating company guidance.
AI-Driven Demand and Capacity Ramp: Utilization Stays Healthy
VNET’s results were fueled by surging AI-related demand from enterprise customers. Customer-utilized wholesale capacity reached 623MW, up 77% from a year earlier, despite a minor sequential dip in utilization rates (70.1% vs. 74.3% prior quarter), reflecting aggressive new capacity additions. Commitment rates for in-service capacity remained high at 95.3%. Retail IDC business was steady, with a 64% utilization rate and higher MRR per cabinet, although total cabinets in service declined due to restructuring.
Margins and Profitability: Adjusted EBITDA Up 22.6% with Improved Cash Gross Margins
VNET’s focus on quality growth led to an 11.6% annual rise in adjusted EBITDA for Q4 (RMB805 million) and 22.6% for the full year to RMB2.98 billion—again topping guidance. Adjusted cash gross profit expanded 26.4% to RMB4.22 billion, and the cash gross margin climbed to 42.4% from 40.4%. These gains outpaced increases in operating expenses, even as the company invested in R&D and marketing to fuel expansion.
| Key Segment | 2025 Amount (RMB) | YoY Growth (%) | Remark |
|---|---|---|---|
| Total Net Revenues | 9.95B | 20.5% | Above guidance |
| Wholesale IDC Revenue | 3.46B | 77.4% | Key driver |
| Retail IDC Revenue | 3.96B | 3.5% | Steady |
| Non-IDC Revenue | 2.52B | 1.8% | Cloud & VPN |
| Adjusted EBITDA | 2.98B | 22.6% | Margin up to 29.9% |
| Adjusted Cash Gross Margin | -- | 42.4% | Up from 40.4% |
Financial Health: Liquidity Grows with Expanding Assets
VNET strengthened its financial base, ending 2025 with RMB6.58 billion in cash, cash equivalents, and short-term investments, up from RMB2.04 billion the prior year. Net cash from operations reached nearly RMB1.92 billion for 2025. While total debt increased to support rapid scaling, the company’s asset base expanded substantially, with property and equipment rising to RMB22.78 billion.
2026 Outlook: Management Guides for 15%-19% Revenue Growth and Higher EBITDA
Looking forward, management projects net revenues of RMB11.5 to RMB11.8 billion in 2026—an anticipated growth of up to 18.6%. Adjusted EBITDA is expected to range from RMB3.55 to RMB3.75 billion, a projected increase of 19.2% to 25.9%. Capital expenditures are likely to ramp to RMB10–12 billion as VNET advances its Hyperscale 2.0 framework and continues to invest in capacity and AI-driven solutions.
| 2026 Company Outlook | Low | High | YoY Growth (%) |
|---|---|---|---|
| Net Revenue (RMB B) | 11.5 | 11.8 | 15.6 – 18.6 |
| Adj. EBITDA (RMB B) | 3.55 | 3.75 | 19.2 – 25.9 |
| Capex (RMB B) | 10 | 12 | — |
Takeaway: Growth Trajectory Remains Solid as AI and Cloud Demand Drive Opportunity
VNET enters 2026 with momentum, a strengthened balance sheet, and a scalable model to meet fast-growing demand from AI and cloud-driven enterprises. The company delivered on every metric in 2025, setting the pace for another year of double-digit top- and bottom-line expansion. Investors and market watchers may want to follow developments in VNET’s capacity, order pipeline, and AI strategy as the company pursues long-term value and sustainable growth in China’s digital infrastructure landscape.
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