VNET Group's (VNET) recent 500 megawatt order win adds more visibility to its capacity ramp up over the next three years, Morgan Stanley said in a Tuesday note.
As most orders in the first half of 2025 were delivered, move-ins slowed in the first half of 2026, but should begin to re-accelerate in the second half as VNET starts delivering large orders secured since Q4 2025. Q1 2027 is expected to see even faster move-ins, and the analysts said they expect Q2 revenue and EBITDA to remain stable quarter-over-quarter, according to the note.
Following the 500 MW order win from one hyperscaler, VNET is confident in winning more orders from another hyperscaler's recent tender. The company expects stable prices for now and sees potential upside if supply remains constrained, the brokerage said.
VNET is actively seeking more gigawatt-scale campuses within Inner Mongolia and the Yangtze Delta, as well as potentially expanding into another two to three new nodes within the East Data West Compute zones, according to the note.
Morgan Stanley kept an overweight rating on VNET Group with a price target of $16.
Shares of VNET Group rose more than 8% in Wednesday trading.
Price: $10.72, Change: $+0.80, Percent Change: +8.06%