Goldman Sachs has signaled continued conviction in parts of China's data center industry but has adjusted short-term assumptions to mirror evolving capacity utilisation and client activity. The bank's analysts said they remain attentive to imminent order announcements and the progress of strategic partnerships, which they view as potential catalysts for the sector.
GDS Holdings
Goldman Sachs kept its Buy rating on GDS Holdings while lowering its 12-month price target for the company's shares. The new target is $46 for the U.S.-listed stock and HK$45 for the Hong Kong-listed shares, down from $49 and HK$47 respectively. For second-quarter 2026, Goldman Sachs projects revenue of 3.07 billion yuan, a 6% increase year-over-year and roughly 2% below consensus estimates. Adjusted EBITDA is forecast to decline 2% year-over-year to 1.34 billion yuan, about 2% above consensus.
The firm noted that the market appears to have already priced in a potential 500 megawatt order volume in the first half of 2026, citing management's upbeat remarks during the first-quarter results call. Analysts said they expect the company to provide order updates in July and August.
VNET Group
Goldman Sachs also maintained a Buy rating on VNET and left its $16 price target unchanged, using a valuation approach based on 12 times 2027 estimated enterprise value to EBITDA. The bank trimmed its second-quarter 2026 revenue estimate by 3% to 2.77 billion yuan, which represents 14% year-over-year growth and sits about 1% below consensus. Despite the revenue revision, Goldman Sachs left its second-quarter adjusted EBITDA forecast largely intact at 927 million yuan, a 26% increase year-over-year and approximately 2% above consensus.
Analysts said the revenue revision reflects slower customer move-in activity and that they are awaiting additional information on VNET's strategic collaboration with CATL and its overseas expansion plans.
Range Intelligent and A-share operators
For A-share data center operators, Goldman Sachs left estimates and price targets unchanged and identified Range Intelligent as its preferred pick in that cohort. The bank highlighted Range Intelligent's ample capacity reserves, broad AI data center capabilities, and varied low-cost financing options as the rationale for its preference.
Outlook
Overall, Goldman Sachs signalled a positive stance toward selected operators in China's data center market while making measured near-term forecast adjustments to reflect capacity utilisation trends and customer activity. The investment case for these names, according to the bank, will be clarified further by upcoming order announcements and details on strategic partnerships.