This article only represents the author's own views.
When Chen Sheng, who also goes by Josh, founded VNET Group Inc. (VNET.US) in 1996, China had yet to build its first independent, privately owned data center. Three decades later, including a spotty track record filled with ups-and-downs, VNET thinks it has finally found a formula for success by leaning into an AI boom that has made data center capacity a key asset in the U.S.-China technology race.
That new reality was on display last week, when a consortium linked to leading battery maker Contemporary Amperex Technology Ltd. (CATL)(300750.SZ; 3750.HK) agreed to buy about 38% of VNET’s shares for nearly $1 billion. VNET’s shares surged roughly 25% on the announcement, reflecting not only a big vote of confidence in its prospects, but also CATL’s belief that the stock was highly undervalued at the time.