GDS-SW (09698) rose nearly 3% in afternoon trading. At the time of writing, the share price had increased by 2.53% to HK$42.20, with a turnover of HK$127 million.

On January 30, GDS announced it had reached an agreement with Huatai Capital Investment Limited to issue US$300 million in Series B convertible preferred shares through a private placement. The funds raised will be primarily used for data center expansion and general corporate purposes.

JPMorgan released a research report stating that it expects GDS's AI data center construction projects in China to accelerate in 2026. This expectation is based on an anticipated increase in the supply of domestic chips, greater clarity regarding the supply of NVIDIA's H200 GPUs, and more AI applications being deployed by mainland suppliers. Citing stronger core business performance and the potential value realization from its equity investments, the firm raised its price target for the US-listed shares from US$40 to US$55 and reaffirmed its "Overweight" rating.