VNET Group (VNET.US) saw its stock price soar 6.34% in pre-market trading on Tuesday, reaching $10.83 per share. This significant uptick comes on the heels of a positive research report from CITIC Securities, highlighting the company's strong growth prospects in the data center industry.

According to CITIC Securities, VNET Group, a leading IDC enterprise in China, has ambitious plans to expand its total managed data center capacity to 10GW by 2036. The company is also actively deploying green power direct connections, a move expected to boost profits. As newly constructed IDCs are gradually delivered and AI computing demand drives improved customer rack utilization rates, analysts anticipate continued performance growth for VNET Group.

The research report also shed light on VNET Group's impressive capital expenditure projections for 2025, estimated at 10-12 billion yuan, representing a year-over-year increase of 101%-141%. This substantial investment is expected to result in a planned delivery volume exceeding the combined total of the previous three years. Additionally, the rack utilization rate of the company's delivered IDCs has shown rapid improvement, with performance accelerating in the first half of 2025. These factors collectively contribute to the positive sentiment surrounding VNET Group's stock, driving the pre-market surge.