GDS-SW's stock surged 7.85% during intraday trading on Tuesday, reflecting strong investor optimism following a significant corporate announcement.

The company has proposed to increase the voting power of Class B ordinary shares held by founder and CEO William Wei Huang from twenty to fifty votes per share. This change aims to more clearly demonstrate control by Chinese nationals, addressing regulatory compliance requirements that certain major customers in the financial and internet sectors have cited as a condition for working with data center providers.

The board considers this an enhancement of the existing weighted voting rights structure, noting it does not materially affect governance since Mr. Huang already has the ability to appoint a majority of board members. The proposal is scheduled for consideration at a general meeting of Series A convertible preferred shareholders on February 24, 2026.