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Goldman Sachs: AI Demand Improves China Data Center Outlook, but Focus Shifts to Capital Efficiency
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A Goldman Sachs research report indicates that stronger-than-expected AI infrastructure demand is improving the medium-term outlook for Chinese data center operators. However, the industry is shifting focus toward capital allocation, with the core metric being return on invested capital (ROIC) exceeding the cost of capital. The report compares three business models: power shells (benchmark ROIC ~5%, improvement requires low financing costs, REITs, and globalization), GPU-as-a-Service (GPUaaS, needs monetization and server supply solutions), and token factories (dependent on pricing, model competitiveness, and utilization rates). Goldman Sachs assigns buy ratings to GDS Holdings (万国数据), 21Vianet Group (世纪互联), and Runze Technology (润泽科技); a neutral rating to Shanghai Data Group (数据港); and a sell rating to Beijing Sinnet Technology (光环新网).
Source report
October 9, 2026
Goldman Sachs Research reports that stronger-than-expected demand for AI infrastructure is improving the medium-term outlook for Chinese data center operators. However, the industry is shifting toward capital allocation, with the core focus being ROIC above the cost of capital.
The report compares three business models: Power Shell, GPUaaS, and Token Factory.
- Power Shell: Benchmark ROIC is approximately 5%. Improvement requires lower financing costs, REITs, and globalization.
- GPUaaS: Key challenges include monetization and server supply.
- Token Factory: Performance depends on pricing, model competitiveness, and utilization rates.
Goldman Sachs assigns the following ratings:
- Buy: GDS Holdings, 21Vianet, Runze Technology
- Neutral: Data Center
- Sell: Guanghuan Xinwang
Source
research_reportNeutral / independent