This article only represents the author's own views.
As the AI explosion accelerates, some of the best-positioned companies to capitalize from the boom are ones that can not only generate revenue from the business, but also possesses the financial capacity to develop the technology and supporting infrastructure.
That financial strength and strategic capital deployment were key highlights in the first-quarter financial report for GDS Holdings Ltd. (GDS.US; 9698.HK), released on May 20, which showcased the company’s strong and diversified capital structure to support its capital-intensive data center expansion. The report showed the company, China’s largest independent data center (IDC) operator, is using its financial resources to aggressively add new capacity to tap booming demand from clients running AI applications. Such applications consume huge amounts of computing power and electricity, which data centers excel at providing.