VNET Group recently won 200MW project in China, says Jefferies

Jefferies analysts believe large Chinese Internet player and communications service providers, or CSPs, have started ramping up cloud capex to support business volume growth and drive AI development, the firm tells investors in a research note. GDS Holdings (GDS) has seen faster move-in by existing Chinese CSP customers, while VNET Group (VNET) recently won a 200MW project in Inner Mongolia from “an Internet player,” according to the firm, which adds that its channel checks suggest China is buying 1M Nvidia (NVDA) H20 GPUs this year, which most purchases being made by Internet players.