Shares of GDS-SW (ASX: 09698) rose more than 5% in trading. At the time of writing, the stock was up 4.94% to HK$34, with the trading volume reaching approximately HK$94.91 million.

The upward movement follows the company's recent announcement of a strategic cooperation agreement with the Ulanqab Municipal People's Government. According to the official plan, GDS Holdings Ltd is set to invest over RMB 30 billion in Ulanqab over the next five years.

This significant investment will be directed towards constructing several high-density data center campuses and gigawatt-scale data center parks. The new facilities are designed to meet the diverse business deployment needs of AI computing clients.

A key feature of the project is its commitment to sustainability, aiming to achieve over 80% green power coverage through methods like direct green power connections and green electricity trading. This initiative is expected to create a large-scale, carbon-neutral data center cluster.

The signing of this strategic pact with the Ulanqab government marks a crucial milestone for GDS Holdings Ltd as it intensifies its focus on building AI infrastructure within China.

The company plans to leverage Ulanqab's unique advantages in green energy resources and its strategic geographical network. The goal is to establish a new generation of AI infrastructure in the region that is secure, reliable, intelligent, efficient, and environmentally friendly.