VNET Group, Inc. Surpasses Expectations in Q1 2026 with Strong Growth in Wholesale IDC Business
On May 26th, VNET Group, Inc., a leading data center and cloud computing company, reported its first quarter 2026 earnings, surpassing expectations with strong growth in its wholesale IDC business. The company's Rotating President, Sharon Liu, presented the quarterly results during a conference call, which was also recorded for later access.
One of the key highlights from the quarter was the robust growth driven by strong customer demand and fast customer move-ins in VNET's wholesale IDC business. As of March 31st, 2026, the company's wholesale capacity in service rose by 18 MW to 907 MW, while the utilized capacity grew by 64 MW to 687 MW, resulting in a utilization rate of 75.7%, up 5.6 percentage points quarter-over-quarter.
Ms. Liu highlighted that the strong execution of VNET's dual-core strategy and Hyperscale 2.0 framework contributed significantly to the company's results. The operational finance team led by Mr. Peter Zhang also played a crucial role in delivering these outcomes.
In terms of financial performance, VNET reported an increase in total net revenues by 19.8% year-over-year to RMB 2.69 billion for the first quarter. Wholesale revenues remained the key growth driver, reaching RMB 1.06 billion, a significant year-over-year increase of 58.1%. The adjusted EBITDA for the first quarter also increased by 30.6% year-over-year to RMB 891.5 million.
Furthermore, VNET's premium reliable services continue to earn customer trust and gain market share, evidenced by multiple high-quality order wins totaling 519 MW year-to-date 2026. This robust order momentum underscores the company's strengthened competitive positioning and growing ability to capture market share.
The company also secured three wholesale orders, totaling 517 MW, fueled by continued growth in AI-driven demand for high-quality data center resources. These wins demonstrate VNET's ability to capitalize on emerging trends and meet the needs of its customers.
Ms. Liu attributed VNET's success to the strong execution of its dual-core strategy and Hyperscale 2.0 framework, as well as continued policy support for AI plus initiatives that is reinforcing industry tailwinds. The company's commitment to innovation and customer satisfaction has allowed it to stay ahead of the competition.
As VNET continues to deliver strong results, investors are optimistic about its prospects. The company's financial performance and growth in wholesale IDC business make it an attractive investment opportunity for those looking to capitalize on emerging trends in data centers and cloud computing.
