NEW YORK, Jan 9, 2026, 10:49 EST — Regular session
- GDS shares down about 2% after an 8.6% jump a day earlier
- Traders keep focus on DayOne’s $2 billion-plus Series C and overseas buildout
- Rate bets after the U.S. jobs report add another layer of noise
Shares of GDS Holdings Limited (GDS.O) were down 1.9% at $40.95 in morning trade on Friday, trimming a rally that lifted the China-linked data center operator a day earlier. The stock closed up 8.6% on Thursday at $41.75.
The swing matters because investors have been treating GDS as a high-beta read on spending for new “hyperscale” data centers — huge sites built for cloud and AI computing — while watching how its overseas affiliate funds growth. DayOne Data Centers this week outlined a $2 billion-plus equity raise and expansion plans in Europe and Asia, but did not disclose a valuation. reuters.com
DayOne said it entered definitive agreements for more than $2.0 billion of Series C equity financing led by Coatue, with the Indonesia Investment Authority also taking part, in a statement filed by GDS on Jan. 5. “This investment reflects deep confidence in DayOne’s platform quality,” DayOne CEO Jamie Khoo said, while Coatue’s Robert Yin said demand for “AI and hyperscale infrastructure” was strong.
Options activity flared alongside the move. A Charles Schwab markets note said option volume in GDS was running at about 18 times the daily average, with traders targeting June $47 call options — contracts that pay off if the stock rises above a set price by expiry.
Friday’s U.S. jobs report added to the churn in rate-sensitive names. Nonfarm payrolls rose by 50,000 in December, below the 60,000 forecast in a Reuters poll, while the jobless rate dipped to 4.4%; “Hiring is still stuck in stall speed,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. reuters.com
Data center landlords Digital Realty and Equinix were up about 3.1% and 2.6%, respectively, as investors weighed the rate outlook, while China peer 21Vianet was up about 3.2% in U.S. trade.
DayOne has been a key part of the GDS story for overseas growth. Reuters reported in October that DayOne, formerly known as GDS International, separated from GDS and said it operated under a distinct ownership and governance framework, even as GDS remained a founding investor.
But the bull case still runs through a capital-heavy buildout, and that can turn quickly if power, permits or big customer demand slip. Any dilution from fresh equity at DayOne, or a tougher funding tape for data centers, could also test the recent run-up.
GDS remains below its 52-week high of $52.50, and well above the 52-week low near $16.93, leaving a wide chart and plenty of two-way trade around the low-$40s. The next clear macro marker is the Federal Reserve’s Jan. 27-28 meeting, a date that matters for leveraged, build-and-lease businesses tied to rate expectations.
