0001104659-21-049104 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2020 shares
Document Information [Line Items]
Entity Registrant Name	GDS Holdings Limited
Entity Central Index Key	0001526125
Document Type	20-F
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Filer Category	Large Accelerated Filer
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-37925
Entity Address, Address Line One	F4/F5, Building C, Sunland International,
Entity Address, Address Line Two	No. 999 Zhouhai Road,
Entity Address, Address Line Three	Pudong
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200137
Entity Address, Country	CN
Document Accounting Standard	U.S. GAAP
Entity Incorporation, State or Country Code	E9
ICFR Auditor Attestation Flag	true
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	F4/F5, Building C, Sunland International,
Entity Address, Address Line Two	No. 999 Zhouhai Road,
Entity Address, Address Line Three	Pudong
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200137
Entity Address, Country	CN
Contact Personnel Name	Mr. Daniel Newman
City Area Code	86
Local Phone Number	21-2029 2200
ADS
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing eightClass A ordinary shares
Security Exchange Name	NASDAQ
Trading Symbol	GDS
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	1,427,590,059
Title of 12(b) Security	Class A ordinary shares, par value $0.00005 per share*
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	67,590,336

CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash	¥ 16,259,457	¥ 5,810,938
Restricted cash	86,829	34,299
Accounts receivable, net of allowance for doubtful accounts	1,480,335	879,962
Value-added-tax ("VAT") recoverable	155,620	129,994
Prepaid expenses	163,986	80,913
Other current assets	172,579	148,603
Total current assets	18,318,806	7,084,709
Property and equipment, net	29,596,061	19,184,639
Intangible assets, net	785,322	394,628
Prepaid land use rights, net	678,190	747,187
Operating lease right-of-use assets	3,059,700	796,679
Goodwill	2,596,393	1,905,840	¥ 1,751,970
Deferred tax assets	146,088	72,931
Restricted cash	146,643	128,025
VAT recoverable	1,445,521	888,483
Other non-current assets	486,071	289,410
Total assets	57,258,795	31,492,531
Current liabilities
Short-term borrowings and current portion of long-term borrowings (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB254,000 and RMB343,944 as of December 31, 2019 and 2020, respectively)	2,153,390	1,137,737
Accounts payable (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB181,448 and RMB194,325 as of December 31, 2019 and 2020, respectively)	3,657,112	1,675,966
Accrued expenses and other payables (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB160,401 and RMB152,534 as of December 31, 2019 and 2020, respectively)	1,395,981	817,883
Deferred revenue (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB68,003 and RMB90,192 as of December 31, 2019 and 2020, respectively)	96,668	90,316
Operating lease liabilities, current (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB31,869 and RMB50,888 as of December 31, 2019 and 2020, respectively)	86,258	55,139
Finance lease and other financing obligations, current (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB125,318 and RMB31,629 as of December 31, 2019 and 2020, respectively)	254,412	222,473
Total current liabilities	7,643,821	3,999,514
Long-term borrowings, excluding current portion (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB12,500 and RMB60,042 as of December 31, 2019 and 2020, respectively)	10,566,746	8,028,473
Convertible bonds payable	1,928,466	2,049,654
Operating lease liabilities, non-current (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB66,387 and RMB361,502 as of December 31, 2019 and 2020, respectively)	1,542,895	709,998
Finance lease and other financing obligations, non-current (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB921,965 and RMB982,209 as of December 31, 2019 and 2020, respectively)	8,097,881	4,751,121
Deferred tax liabilities (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB76,297 and RMB91,036 as of December 31, 2019 and 2020, respectively)	462,007	252,672
Other long-term liabilities (including amounts of the consolidated VIEs without resource to the primary beneficiary of RMB29,950 and RMB34,281 as of December 31, 2019 and 2020, respectively)	349,257	345,537
Total liabilities	30,591,073	20,136,969
Mezzanine Equity
Redeemable preferred shares (US$0.00005 par value; 150,000 shares authorized, issued and outstanding as of December 31, 2019 and December 31, 2020, respectively; Redemption value of RMB1,061,981 and RMB980,910 as of December 31, 2019 and December 31, 2020, respectively; Liquidation value of RMB1,537,636 and RMB2,576,578 as of December 31, 2019 and December 31, 2020, respectively)	980,910	1,061,981
Redeemable non-controlling interests	120,820
Total mezzanine equity	1,101,730	1,061,981
Shareholders' Equity
Ordinary shares (US$0.00005 par value; 2,002,000,000 authorized; 1,148,842,379 and 1,427,590,059 Class A ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively; 67,590,336 Class B ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively)	507	412
Additional paid-in capital	28,728,717	12,403,043
Accumulated other comprehensive loss	(439,635)	(52,684)
Accumulated deficit	(2,723,597)	(2,057,190)
Total shareholders' equity	25,565,992	10,293,581	¥ 5,521,925	¥ 4,475,512
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders' equity	¥ 57,258,795	¥ 31,492,531

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2019 CNY (¥) shares
Current liabilities, VIEs
Short-term borrowings and current portion of long-term borrowings	¥ 2,153,390	¥ 1,137,737
Accounts payable	3,657,112	1,675,966
Accrued expenses and other payables	1,395,981	817,883
Deferred revenue	96,668	90,316
Operating lease liabilities, current	86,258	55,139
Finance lease and other financing obligations, current	254,412	222,473
Long-term borrowings, excluding current portion	10,566,746	8,028,473
Operating lease liabilities, non-current	1,542,895	709,998
Finance lease and other financing obligations, non-current	8,097,881	4,751,121
Deferred tax liabilities	462,007	252,672
Other long-term liabilities	¥ 349,257	¥ 345,537
Ordinary shares
Ordinary shares, shares authorized \| shares	2,002,000,000	2,002,000,000
Class A
Ordinary shares
Ordinary shares, shares issued \| shares	1,427,590,059	1,148,842,379
Ordinary shares, shares outstanding \| shares	1,427,590,059	1,148,842,379
Class B
Ordinary shares
Ordinary shares, shares issued \| shares	67,590,336	67,590,336
Ordinary shares, shares outstanding \| shares	67,590,336	67,590,336
Redeemable preferred shares
Redeemable preferred shares
Preferred Stock, Shares Authorized \| shares	150,000	150,000
Preferred Stock, Shares Issued \| shares	150,000	150,000
Preferred Stock, Shares Outstanding \| shares	150,000	150,000
Redemption value	¥ 980,910	¥ 1,061,981
Liquidation value	2,576,578	1,537,636
VIEs \| Without resourse to the primary beneficiary
Current liabilities, VIEs
Short-term borrowings and current portion of long-term borrowings	343,944	254,000
Accounts payable	194,325	181,448
Accrued expenses and other payables	152,534	160,401
Deferred revenue	90,192	68,003
Operating lease liabilities, current	50,888	31,869
Finance lease and other financing obligations, current	31,629	125,318
Long-term borrowings, excluding current portion	60,042	12,500
Operating lease liabilities, non-current	361,502	66,387
Finance lease and other financing obligations, non-current	982,209	921,965
Deferred tax liabilities	91,036	76,297
Other long-term liabilities	¥ 34,281	¥ 29,950

CONSOLIDATED STATEMENTS OF OPERATIONS - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenue	¥ 5,738,972	¥ 4,122,405	¥ 2,792,077
Cost of revenue	(4,188,521)	(3,079,679)	(2,169,636)
Gross profit	1,550,451	1,042,726	622,441
Operating expenses
Selling and marketing expenses	(134,937)	(129,901)	(110,570)
General and administrative expenses	(702,524)	(411,418)	(329,601)
Research and development expenses	(40,049)	(21,627)	(13,915)
Income from operations	672,941	479,780	168,355
Other income (expenses):
Interest income	29,011	53,017	19,213
Interest expenses	(1,316,506)	(968,693)	(656,186)
Foreign currency exchange gain (loss), net	(21,038)	(6,000)	20,306
Government grants	27,050	9,898	3,217
Gain from purchase price adjustment	55,154
Others, net	4,952	5,565	5,436
Loss before income taxes	(548,436)	(426,433)	(439,659)
Income tax benefits (expenses)	(120,778)	(15,650)	9,391
Net loss	(669,214)	(442,083)	(430,268)
Net loss attributable to redeemable non-controlling interests	2,807
Net loss attributable to GDS Holdings Limited shareholders	(666,407)	(442,083)	(430,268)
Accretion to redemption value of redeemable non-controlling interests	(18,627)
Net loss available to GDS Holdings Limited shareholders	(685,034)	(442,083)	(430,268)
Change in redemption value of redeemable preferred shares		(17,760)
Cumulative dividend on redeemable preferred shares	(52,709)	(40,344)
Net loss available to GDS Holdings Limited ordinary shareholders	¥ (737,743)	¥ (500,187)	¥ (430,268)
Loss per ordinary share
Basic and diluted	¥ (0.59)	¥ (0.45)	¥ (0.43)
Weighted average number of ordinary share outstanding
Basic and diluted	1,253,559,523	1,102,953,366	990,255,959

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	¥ (669,214)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of nil tax	(386,951)
Comprehensive loss	(1,056,165)
Comprehensive loss attributable to redeemable non-controlling interests	2,807
Comprehensive loss attributable to GDS Holdings Limited shareholders	¥ (1,053,358)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - CNY (¥) ¥ in Thousands	Ordinary Shares	Additional paid-in capital	Accumulated other comprehensive (loss) income	Accumulated deficit Impact of change in accounting policy	Accumulated deficit	Impact of change in accounting policy	Total
Changes in shareholders' equity
Impact of change in accounting policy				¥ 726		¥ 726
Adjusted balance	¥ 320	¥ 5,861,445	¥ (200,688)		¥ (1,184,839)		¥ 4,476,238
Adjusted balance (in shares)	941,269,679
Balance at Dec. 31, 2017	¥ 320	5,861,445	(200,688)		(1,185,565)		4,475,512
Balance (in shares) at Dec. 31, 2017	941,269,679
Changes in shareholders' equity
Loss for the year					(430,268)		(430,268)
Loss for the year (Note i)							(430,268)
Other comprehensive income			61,434				61,434
Total comprehensive loss			61,434		(430,268)		(368,834)
Issuance of ordinary shares	¥ 21	1,283,287					1,283,308
Issuance of shares (in shares)	65,800,000
Shares surrendered (in shares)	(36)
Share-based compensation		105,877					105,877
Exercise of share options		18,979					¥ 18,979
Exercise of share options (in shares)	3,614,464						3,614,464
Vesting of restricted shares (in shares)	7,066,060
Settlement of liability-classified restricted share award		6,357					¥ 6,357
Settlement of liability-classified shares award (in shares)	260,560
Settlement of share options and restricted share awards with shares held by depository bank (in shares)	(10,941,084)
Balance at Dec. 31, 2018	¥ 341	7,275,945	(139,254)		(1,615,107)		5,521,925
Balance (in shares) at Dec. 31, 2018	1,007,069,643
Changes in shareholders' equity
Loss for the year					(442,083)		(442,083)
Loss for the year (Note i)							(442,083)
Other comprehensive income			86,570				86,570
Total comprehensive loss			86,570		(442,083)		(355,513)
Issuance of ordinary shares	¥ 55	4,934,071					4,934,126
Issuance of shares (in shares)	160,400,184
Shares surrendered (in shares)	(8)
Shares issued to depository bank	¥ 16	(16)
Shares issued to depository bank (in shares)	48,962,896
Change in redemption value of redeemable preferred shares		(17,760)					(17,760)
Redeemable preferred shares dividends		(40,344)					(40,344)
Share-based compensation		189,756					189,756
Exercise of share options		53,407					¥ 53,407
Exercise of share options (in shares)	10,150,336						10,150,336
Vesting of restricted shares (in shares)	8,885,120
Settlement of liability-classified restricted share award		7,984					¥ 7,984
Settlement of liability-classified shares award (in shares)	237,312
Settlement of share options and restricted share awards with shares held by depository bank (in shares)	(19,272,768)
Balance at Dec. 31, 2019	¥ 412	12,403,043	(52,684)		(2,057,190)		10,293,581
Balance (in shares) at Dec. 31, 2019	1,216,432,715
Changes in shareholders' equity
Loss for the year							(669,214)
Loss for the year (Note i)					(666,407)		(666,407)
Other comprehensive income			(386,951)				(386,951)
Total comprehensive loss			(386,951)		(666,407)		(1,053,358)
Issuance of ordinary shares	¥ 84	15,974,433					15,974,517
Issuance of shares (in shares)	246,153,848
Shares issued to depository bank	¥ 11	(11)
Shares issued to depository bank (in shares)	32,592,288
Conversion of convertible bonds		65					65
Conversion of convertible bonds (in shares)	1,544
Net loss attributable to redeemable non-controlling interests							2,807
Accretion to redemption value of redeemable non-controlling interests		(18,627)					(18,627)
Redeemable preferred shares dividends		(52,709)					(52,709)
Share-based compensation		333,686					333,686
Exercise of share options		78,748					¥ 78,748
Exercise of share options (in shares)	14,222,096						14,222,096
Vesting of restricted shares (in shares)	12,494,104
Settlement of liability-classified restricted share award		10,089					¥ 10,089
Settlement of liability-classified shares award (in shares)	190,536
Settlement of share options and restricted share awards with shares held by depository bank (in shares)	(26,906,736)
Balance at Dec. 31, 2020	¥ 507	¥ 28,728,717	¥ (439,635)		¥ (2,723,597)		¥ 25,565,992
Balance (in shares) at Dec. 31, 2020	1,495,180,395

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Net loss attributable to redeemable non-controlling interests	¥ 2,807

CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	¥ (669,214)	¥ (442,083)	¥ (430,268)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Amortization of debt issuance and commitment cost and debt discount	160,699	99,380	61,373
Depreciation and amortization	1,638,474	1,142,032	741,507
Operating lease cost relating to prepaid land use rights	20,412
Net loss (gain) on disposal of property and equipment	(256)	(703)	2,212
Share-based compensation expenses	333,686	189,756	105,877
Gain from purchase price adjustment	(55,154)
Loss from equity method investment	3,375	1,213
Allowance for doubtful accounts	2,037	274	241
Deferred tax benefit	(89,739)	(50,172)	(36,597)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(465,189)	(342,191)	(157,708)
VAT recoverable	(463,630)	(323,044)	(221,390)
Prepaid expenses	(53,933)	(13,320)	(14,153)
Other current assets	65,756	(8,095)	(11,477)
Other non-current assets	(72,099)	(8,678)	(37,035)
Accounts payable	119,163	22,540	25,292
Deferred revenue	6,285	31,417	17,468
Accrued expenses and other payables	(139,891)	(20,434)	(56,693)
Other long-term liabilities	9,015	1,299	(1,559)
Operating leases	(28,910)	14,245
Net cash (used in) provided by operating activities	320,887	293,436	(12,910)
Cash flows from investing activities
Payments for purchase of property and equipment and land use rights	(8,037,002)	(4,557,686)	(4,260,977)
Cash acquired from the business combinations	4,801	12,091	466
Cash paid for the business combinations	(1,172,518)	(190,066)	(359,372)
Cash paid for the asset acquisitions	(180,910)	(363,939)	(115,167)
Cash paid for equity investments	(4,500)	(6,000)
Cash paid for potential acquisitions	(4,300)	(30,700)	(1,000)
Proceeds from sale of property and equipment	16,422	5,069	13,896
Deposits paid for construction of property and equipment			(10,896)
Net cash used in investing activities	(9,378,007)	(5,131,231)	(4,733,050)
Cash flows from financing activities:
Proceeds from short-term borrowings	1,156,215	467,744	943,088
Proceeds from long-term borrowings	6,939,140	5,000,510	2,814,197
Repayment of short-term borrowings	(438,925)	(758,941)	(776,224)
Repayment of long-term borrowings	(4,187,184)	(1,968,913)	(834,154)
Payment of issuance cost of borrowings	(112,512)	(156,742)	(91,124)
Payment of commitment cost of borrowings	(45,968)
Proceeds from exercise of stock options	78,748	55,469	16,866
Net proceeds from issuance of convertible bonds			1,867,304
Net proceeds from issuance of ordinary shares	15,974,517	4,934,126	1,283,308
Net proceeds from issuance of redeemable preferred shares		989,349
Payment of redeemable preferred shares dividends	(65,489)	(25,014)
Capital contribution from redeemable non-controlling shareholder	105,000
Payment under finance leases and other financing obligations	(198,234)	(289,467)	(190,718)
Proceeds from other financing arrangements	1,079,370	302,761
Payment for purchase of property and equipment through vendor financing	(92,299)	(68,864)
Payment of contingent consideration for the acquisition of subsidiaries	(48,718)	(120,079)	(155,737)
Net cash provided by financing activities	20,143,661	8,361,939	4,876,806
Effect of exchange rate changes on cash and restricted cash	(566,874)	164,370	206,302
Net increase in cash and restricted cash	10,519,667	3,688,514	337,148
Cash and restricted cash at beginning of year	5,973,262	2,284,748	1,947,600
Cash and restricted cash at end of year	16,492,929	5,973,262	2,284,748
Supplemental disclosures of cash flow information
Interest paid	1,113,443	841,388	633,063
Income tax paid	211,612	17,031	3,371
Supplemental disclosures of non-cash investing and financing activities
Changes in consideration payable for the acquisition of subsidiaries	718,546	239,096	148,217
Settlement of liability-classified restricted share award	10,089	¥ 7,984	¥ 6,357
Conversion of convertible bonds	¥ 65

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2020

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

1 DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

(a) Description of business

GDS Holdings Limited (the “Parent” or “GDS Holdings”) was incorporated in the Cayman Islands on December 1, 2006. GDS Holdings and its consolidated subsidiaries and consolidated variable interest entities (collectively referred to as “the Company”) are principally engaged in providing colocation, managed hosting and managed cloud services in the People’s Republic of China (the “PRC” excluding Taiwan, the Hong Kong (the “Hong Kong SAR”) and the Macau for the purposes of these consolidated financial statements only) and Hong Kong SAR. The Company operates its data centers in Hong Kong SAR, Shanghai Municipality, Beijing Municipality, Chongqing Municipality, Jiangsu Province, Guangdong Province, Sichuan Province, Hebei Province and Inner Mongolia of the PRC and serves customers that primarily operate in the cloud, internet and banking industries.

(b) Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”).

The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousand.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Principles of consolidation

The accompanying consolidated financial statements include the financial statements of GDS Holdings Limited, its subsidiaries and consolidated variable interest entities and variable interest entities’ subsidiaries for which the Company is the primary beneficiary.

In certain regions of the PRC, the Company’s operations are conducted through Shanghai Xinwan Enterprise Management Co., Ltd. (“Management HoldCo”), Beijing Wanguo Chang’an Science and Technology Co., Ltd. (“GDS Beijing”), GDS Beijing’s subsidiaries and Shanghai Shu’an Data Services Co., Ltd. (“GDS Shanghai”) (referred to as the “VIEs”) to comply with the PRC laws and regulations, which prohibit foreign investments in companies that are engaged in data center related business in those regions. Individuals acting as nominee equity holders ultimately hold the legal equity interests of the VIEs on behalf of the Company.

Prior to December 2019, the equity holders of GDS Beijing and GDS Shanghai were William Wei Huang, CEO of the Company, and his relative. In order to enhance corporate governance and facilitate administration of the VIEs, in December 2019, GDS Holdings completed transfer of ownership of the 100% equity interest of GDS Beijing and GDS Shanghai from William Wei Huang and his relative to a newly established holding company, Management HoldCo. The entire equity interest in Management HoldCo is held by a number of management personnel designated by the Board of Directors of GDS Holdings. In conjunction with the transfer of legal ownership, GDS (Shanghai) Investment Co., Ltd. (“GDS Investment Company”), a subsidiary of GDS Holdings, entered into a series of contractual arrangements with Management HoldCo, its shareholders, GDS Beijing and GDS Shanghai to replace the previous contractual arrangements with GDS Beijing and GDS Shanghai on substantially the same terms under such previous contractual arrangements. The previous contractual arrangements were terminated simultaneously when the current contractual arrangements came into effect, and the subsidiary of GDS Holdings under the previous and current contractual arrangements is the same entity, namely GDS Investment Company. GDS Holdings also replaced the sole director of GDS Shanghai and certain subsidiaries of GDS Beijing with a board of three directors. William Wei Huang acts as the Chairman of the board of directors of Management HoldCo, GDS Investment Company, GDS Beijing and GDS Shanghai and their subsidiaries respectively. Other management members of GDS and board appointee serve as directors and officers of Management HoldCo., GDS Investment Company, GDS Beijing and GDS Shanghai and their subsidiaries.

This restructuring could reduce risk by allocating ownership of the VIEs among a larger number of individual management shareholders, and strengthen corporate governance with the establishment of the board of directors of the VIEs and their subsidiaries. This restructuring could also create a more stable ownership structure by avoiding reliance on a single or small number of natural persons, and by buffering the ownership of the VIEs with an additional layer of legal entities, creating an institutional structure that is tied to the Company’s management philosophy and culture.

VIE Agreements were entered into among GDS Beijing, GDS Shanghai, Management HoldCo, its shareholders and GDS Investment Company. The following is a summary of the contractual VIE Agreements entered among GDS Investment Company, GDS Beijing, GDS Shanghai, Management HoldCo and its shareholders.

Equity Interest Pledge Agreements. Pursuant to the equity interest pledge agreements, each shareholder of Management HoldCo has pledged all of his or her equity interest in Management HoldCo as a continuing first priority security interest in favor of GDS Investment Company, as applicable, to respectively guarantee Management HoldCo’s and its shareholders’ performance of their obligations under the relevant contractual arrangement, and Management HoldCo has pledged all of its equity interest in GDS Beijing and GDS Shanghai as a continuing first priority security interest in favor of GDS Investment Company, as applicable, to respectively guarantee their performance of their obligations under the relevant contractual arrangement, which include the exclusive technology license and service agreement, loan agreement, exclusive call option agreement, and shareholder voting rights proxy agreement, and intellectual property rights license agreement. If GDS Beijing or GDS Shanghai or Management HoldCo or any of its shareholders breaches their contractual obligations under these agreements, GDS Investment Company, as pledgee, will be entitled to certain rights regarding the pledged equity interests, including receiving proceeds from the auction or sale of all or part of the pledged equity interests of Management HoldCo, GDS Beijing and GDS Shanghai in accordance with PRC law. Management HoldCo and each of its shareholders agrees that, during the term of the equity interest pledge agreements, it or he or she will not dispose of the pledged equity interests or create or allow creation of any encumbrance on the pledged equity interests without the prior written consent of GDS Investment Company. The equity interest pledge agreements remain effective until GDS Beijing and GDS Shanghai and Management HoldCo and its shareholders discharge all their obligations under the contractual arrangements. The equity pledge has been registered by Management HoldCo, GDS Beijing and GDS Shanghai in favor of GDS Investment Company with the relevant office of the Administration for Market Regulation in accordance with the PRC Property Rights Law.

Shareholder Voting Rights Proxy Agreements. Pursuant to the shareholder voting rights proxy agreements, each of GDS Beijing, GDS Shanghai, Management HoldCo and each of its shareholders has irrevocably appointed the PRC citizen(s) as designated by GDS Investment Company to act as GDS Beijing’s, GDS Shanghai’s, Management HoldCo’s and its such shareholder’s exclusive attorney-in-fact to exercise all shareholder rights, including, but not limited to, voting on all matters of Management HoldCo, GDS Beijing, GDS Beijing’s subsidiaries, GDS Shanghai and GDS Shanghai’s subsidiaries requiring shareholder approval, and appointing directors and executive officers. GDS Investment Company is also entitled to change the appointment by designating another PRC citizen(s) to act as exclusive attorney-in-fact of GDS Beijing, GDS Shanghai, Management HoldCo and its shareholders with prior notice to Management HoldCo or its such shareholders. Each shareholder voting rights proxy agreement will remain in force for so long as Management HoldCo remains a shareholder of GDS Beijing or GDS Shanghai and the shareholder remains a shareholder of Management HoldCo, as applicable.

Exclusive Technology License and Service Agreements. Under the exclusive technology license and service agreements, GDS Investment Company licenses certain technology to each of Management Holdco, GDS Beijing and GDS Shanghai and GDS Investment Company has the exclusive right to provide Management HoldCo, GDS Beijing and GDS Shanghai with technical support, consulting services and other services. Without GDS Investment Company’s prior written consent, each of Management HoldCo, GDS Beijing and GDS Shanghai agrees not to accept the same or any similar services provided by any third party. Each of Management HoldCo, GDS Beijing and GDS Shanghai agrees to pay service fees on a yearly basis and at an amount equivalent to all of its net profits as confirmed by GDS Investment Company. GDS Investment Company owns the intellectual property rights arising out of its performance of these agreements. In addition, each of Management HoldCo, GDS Beijing and GDS Shanghai has granted GDS Investment Company an exclusive right to purchase or to be licensed with any or all of the intellectual property rights of Management HoldCo, GDS Beijing or GDS Shanghai at the lowest price permitted under PRC law. Unless otherwise agreed by the parties, these agreements will continue remaining effective.

Intellectual Property Rights License Agreements. Pursuant to an intellectual property rights license agreement between GDS Investment Company and each of Management HoldCo, GDS Beijing and GDS Shanghai, Management HoldCo, GDS Beijing and GDS Shanghai has granted GDS Investment Company an exclusive license to use for free any or all of the intellectual property rights owned by each of them from time to time, and without the parties’ prior written consent, Management HoldCo, GDS Beijing and GDS Shanghai cannot take any actions, including without limitation to, transferring or licensing outside its ordinary course of business any intellectual property rights to any third parties, which may affect or undermine GDS Investment Company’s use of the licensed intellectual property rights from Management HoldCo, GDS Beijing and GDS Shanghai. The parties have also agreed under the agreement that GDS Investment Company should own the new intellectual property rights developed by it regardless whether such development is dependent on any of the intellectual property rights owned by Management HoldCo, GDS Beijing and GDS Shanghai. This agreement can only be early terminated by prior mutual consent of the parties and need to be renewed upon GDS Investment Company’s unilateral request.

Exclusive Call Option Agreements. Pursuant to the exclusive call option agreements, Management HoldCo and each of its shareholders has irrevocably granted GDS Investment Company an exclusive option to purchase, or have its designated person or persons to purchase, at its discretion, to the extent permitted under PRC law, all or part of Management HoldCo’s equity interests in GDS Beijing and GDS Shanghai or its such shareholders’ equity interests in Management HoldCo. The purchase price should equal to the minimum price required by PRC law or such other price as may be agreed by the parties in writing. Without GDS Investment Company’s prior written consent, Management HoldCo and its shareholders have agreed that each of Management HoldCo, GDS Beijing and GDS Shanghai shall not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, create or allow any encumbrance on its assets or other beneficial interests, provide any loans, distribute dividends to the shareholders and etc. These agreements will remain effective until all equity interests of Management HoldCo, GDS Beijing and GDS Shanghai held by their shareholders have been transferred or assigned to GDS Investment Company or its designated person(s).

Loan Agreements. Pursuant to the loan agreements between GDS Investment Company and Management HoldCo or its shareholders, GDS Investment Company has agreed to extend loans in an aggregate amount of RMB310,100 to Management HoldCo solely for the capitalization of GDS Beijing and GDS Shanghai and RMB1,000 to the shareholders of Management HoldCo solely for the capitalization of Management HoldCo. Pursuant to the loan agreements, GDS Investment Company has the right to require repayment of the loans upon delivery of thirty-day’s prior notice to Management HoldCo or its shareholders, as applicable, and Management HoldCo or its shareholders can repay the loans by either sale of their equity interests in GDS Beijing and GDS Shanghai or Management HoldCo, as applicable, to GDS Investment Company or its designated person(s) pursuant to their respective exclusive call option agreements, or other methods as determined by GDS Investment Company pursuant to its articles of association and the applicable PRC laws and regulations.

Under the terms of the VIE Agreements, the Company has (i) the right to receive service fees on a yearly basis at an amount equivalent to all of the net profits of the VIEs under the exclusive technology license and services agreements when such services are provided; (ii) the right to receive all dividends declared by the VIEs and the right to all undistributed earnings of the VIEs; (iii) the right to receive the residual benefits of the VIEs through its exclusive option to acquire 100% of the equity interests in the VIEs, to the extent permitted under PRC law; and (iv) the right to require each of the shareholder of the VIEs to appoint the PRC citizen(s) as designated by GDS Investment Company to act as such shareholder’s exclusive attorney-in-fact to exercise all shareholder rights, including, but not limited to, voting on all matters of the VIEs requiring shareholder approval, disposing of all or part of the shareholder’s equity interest in the VIEs, and appointing directors and executive officers.

In accordance with Accounting Standards Codification (“ASC”) 810-10-25-38A, the Company has a controlling financial interest in the VIEs because the Company has (i) the power to direct activities of the VIEs that most significantly impact the economic performance of the VIEs; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of the VIEs that could potentially be significant to the VIEs. The terms of the VIE Agreements and the Company’s financial support to the VIEs were considered in determining that the Company is the primary beneficiary of the VIEs. Accordingly, the financial statements of the VIEs are consolidated in the Company’s consolidated financial statements.

Under the terms of the VIE Agreements, the VIEs’ equity holders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to the Company. All of the equity (net assets) or deficits (net liabilities) and net income (loss) of the VIEs are attributed to the Company.

The Company has been advised by its PRC legal counsel that each of the VIE agreements is valid, binding and enforceable in accordance with its terms and applicable PRC laws and the ownership structure of the VIEs does not violate applicable PRC Laws. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and future PRC laws and regulations. There can be no assurance that the PRC authorities will take a view that is not contrary to or otherwise different. If the current ownership structure of the Company and the VIE Agreements are determined to be in violation of any existing or future PRC laws and regulations, the PRC government could:

●

Levy fines on the Company or confiscate income of the Company;

●

Revoke or suspend the VIEs’ business or operating licenses;

●

Discontinue or place restrictions or onerous conditions on VIE’s operations;

●

Require the Company to discontinue their operations in the PRC;

●

Require the Company to undergo a costly and disruptive restructuring;

●

Take other regulatory or enforcement actions that could be harmful to the Company’s business.

The imposition of any of these government actions could result in the termination of the VIE agreements, which would result in the Company losing the (i) ability to direct the activities of the VIEs and (ii) rights to receive substantially all the economic benefits and residual returns from the VIEs and thus result in the deconsolidation of the VIEs in the Company’s consolidated financial statements.

The following tables set forth the financial statement balances and amounts of the VIEs and their subsidiaries included in the consolidated financial statements after the elimination of intercompany balances and transactions among VIEs and their subsidiaries.


	As of December 31,
	2019	2020
Assets
Current assets
Cash	730,960	1,310,269
Accounts receivable, net of allowance for doubtful accounts	858,764	1,388,128
VAT recoverable	46,817	85,760
Prepaid expenses	39,124	76,505
Other current assets	32,929	13,259
Total current assets	1,708,594	2,873,921

Property and equipment, net	2,911,727	2,760,618
Intangible assets, net	159,860	194,230
Operating lease right-of-use assets	91,329	430,525
Deferred tax assets	34,157	43,126
Restricted cash	29,508	49,905
VAT recoverable	136,011	113,684
Other non-current assets	75,873	115,315
Total assets	5,147,059	6,581,324

Liabilities
Current liabilities
Short-term borrowings and current portion of long-term borrowings	493,614	628,721
Accounts payable	181,448	194,325
Accrued expenses and other payables	160,401	152,534
Deferred revenue	68,003	90,192
Operating lease liabilities, current	31,869	50,888
Finance lease and other financing obligations, current	125,318	31,629
Total current third-party liabilities	1,060,653	1,148,289

Long-term borrowings, excluding current portion	1,335,084	1,213,020
Operating lease liabilities, non-current	66,387	361,502
Finance lease and other financing obligations, non-current	921,965	982,209
Deferred tax liabilities	76,297	91,036
Other long-term liabilities	29,950	34,281
Total third-party liabilities	3,490,336	3,830,337
Amounts due to GDS Holdings and its non-VIE subsidiaries, net	1,534,768	2,531,025
Total liabilities	5,025,104	6,361,362

As of December 31, 2019 and 2020, accounts receivable of RMB83,468 and RMB66,969, respectively, and property and equipment of RMB114,344 and RMB102,248, respectively, of VIEs were pledged solely to secure banking borrowings of VIEs.

Net revenue, net (loss) income, operating, investing and financing cash flows of the VIEs that were included in the Company’s consolidated financial statements for the years ended December 31, 2018, 2019 and 2020 are as follows:


	Years ended December 31,
	2018	2019	2020

Net revenue	2,712,875	4,013,561	5,453,802
Net (loss) income	(59,757)	99,857	129,254
Net cash provided by operating activities	739,848	414,424	899,132
Net cash used in investing activities	(1,063,826)	(201,995)	(278,744)
Net cash provided by (used in) financing activities	614,575	(43,547)	(20,682)

The unrecognized revenue-producing assets that are held by the VIEs comprise of internally developed software, intellectual property and trademarks which were not recorded on the Company’s consolidated balance sheets as they do not meet all the capitalization criteria.

Costs recognized by the VIEs for outsourcing and other services provided by other entities within the Company were RMB1,260,481, RMB2,017,032 and RMB3,076,398 for the years ended December 31, 2018, 2019 and 2020, respectively, net of the services provided to other entities within the Company. These inter-company transactions are eliminated in the consolidated financial statements.

(b) Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to, the useful lives of long-lived assets, the fair values of assets acquired and liabilities assumed and the consideration transferred in a business combination, the allowance for credit losses, the realization of deferred income tax assets, the fair value of share-based compensation awards, the recoverability of long-lived assets, valuation of right-of-use assets and the fair value of the asset retirement obligation. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements.

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company does not have any cash equivalents as of December 31, 2019 and 2020.

(d) Restricted cash

Restricted cash represents amounts held by banks, which are not available for the Company’s use, as security for bank borrowings, related interests and certain special capital expenditures. Upon repayment of bank borrowings and the related interests, the deposits are released by the bank and available for general use by the Company.

(e) Fair value of financial instruments

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels (Note 17 to the consolidated financial statements):

●

Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

●

Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

●

Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

(f) Contract balances

The timing of revenue recognition, billings and cash collections result in accounts receivable, contract assets and contract liabilities (i.e. deferred revenue). Accounts receivable are recorded at the invoice amount, net of an allowance for doubtful account and is recognized in the period when the Company has transferred products or provided services to its customers and when its right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Prior to the adoption of ASC 326, Financial Instruments - Credit Loss, the Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, the accounts receivable aging, and the customers’ repayment patterns. The Company reviews its allowance for doubtful accounts on a customer-by-customer basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Upon adoption of ASC 326 starting from January 1, 2020, the provision of credit losses for accounts receivable is based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions. While the Company uses the best information available in making determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond the Company’s control. Accounts receivable that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. The Company does not have any off-balance-sheet credit exposure related to its customers.

A contract asset exists when the Company has transferred products or provided services to its customers but customer payment is contingent upon satisfaction of additional performance obligations. Contract assets are recorded in other current assets and other non-current assets in the consolidated balance sheet.

Deferred revenue (a contract liability) is recognized when the Company has an unconditional right to a payment before it transfers goods or services to customers.

(g) Fulfilment costs

Fulfilment costs are capitalized when all three of the criteria are met: a) the costs relate directly to a contract or an anticipated contract that the Company can specifically identify; b) the costs generate or enhance resources of the Company that will be used in satisfying or continuing to satisfy future performance obligations; and c) the costs are expected to be recovered. The asset recognized from capitalizing the costs to obtain or fulfill a contract is amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates. As of December 31, 2019 and 2020, the Company recorded capitalized fulfilment cost of nil and RMB128,983 in other non-current assets.

(h) Equity method investments

The Company’s investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are generally accounted for under the equity method of accounting, as the Company concluded it does not have control, but has the ability to exercise significant influence over the investees. Equity method investments are initially measured at cost, and are subsequently adjusted for cash contributions, distributions and the Company’s share of the income and losses of the investees. The Company records its equity method investment in other non-current assets on the consolidated balance sheet. The Company’s proportionate share of the income or loss from its equity method investment are recorded in others, net on the consolidated statement of operations. The Company reviews its investment periodically to determine if any investment may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees’ fair value. The Company did not record any impairment charges related to its equity method investment for the years ended December 31, 2019 and 2020.

(i) Property and equipment

Property and equipment are carried at cost less accumulated depreciation and any recorded impairment. Property and equipment acquired under finance leases are initially recorded at the present value of minimum lease payments.

Gains or losses arising from the disposal of an item of property and equipment are determined based on the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal.

The estimated useful lives are presented below.


Land		Remaining lease terms
Buildings		Shorter of the lease term and 30 years
Data center equipment
– Machinery		10 - 20 years
– Other equipment		3 - 5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets
Furniture and office equipment		3 - 5 years
Vehicles		5 years

Construction in progress primarily consists of the cost of data center buildings and the related construction expenditures that are required to prepare the data center buildings for their intended use.

No depreciation is provided in respect of construction in progress until it is substantially completed and ready for its intended use. Once a data center building is ready for its intended use and becomes operational, construction in progress is transferred to the respective category of property and equipment and is depreciated over the estimated useful life of the underlying assets.

Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. For assets acquired under a finance lease, the assets are amortized in a manner consistent with the Company’s normal depreciation policy for owned assets if the lease transfers ownership to the Company by the end of the lease term or contains a bargain-purchase-option. Otherwise, assets acquired under a finance lease are amortized over the lease term.

(j) Leases

The Company is a lessee in several non-cancellable operating leases and finance leases, primarily for data centers, lands, offices and other equipment. The Company adopted ASC 842 , Leases, on January 1, 2019, using a modified retrospective method.

The Company determines if an arrangement is or contains a lease at its inception.

The Company recognizes lease liabilities and right-of-use (“ROU”) assets at lease commencement date. Lease liabilities are measured at the present value of unpaid lease payments at the lease commencement date and is subsequently measured at amortized cost using the effective-interest method. Since most of the Company’s leases do not provide an implicit rate, the Company uses its own incremental borrowing rate on a collateralized basis in determining the present value of unpaid lease payments.

ROU assets are initially measured at cost, which consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company. Variable lease payments are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. For operating leases, the Company recognizes a single lease cost on a straight-line basis over the remaining lease term. For finance leases, the ROU assets are subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. Amortization of the ROU assets are recognized and presented separately from interest expense on the lease liability. For leases acquired in business combinations or asset acquisitions, ROU assets also include unamortized balance of an asset or liability recognized in accordance with ASC 805 relating to favorable or unfavorable lease terms.

ROU assets for operating and finance leases are periodically reduced by impairment losses. The Company uses the long-lived assets impairment guidance in ASC 360-10, Property, Plant, and Equipment—Overall, to determine whether a ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

Prior to the adoption of ASC 842, Leases, prepayment for land use rights are presented as prepaid land use rights on the consolidated balance sheet and are measured at cost and subsequently amortized using the straight-line method. Upon the adoption of ASC 842 on January 1, 2019, land use rights acquired are assessed in accordance with ASC 842 and recognized in operating lease ROU assets if they meet the definition of operating lease, or property and equipment if they meet the definition of finance lease.

The Company has elected not to recognize ROU assets and lease liabilities for short-term leases (i.e. leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise).

The Company records an asset and related financing obligation for the estimated construction costs under build-to-suit lease arrangements where it controls the asset during construction. Upon completion of the construction and commencement of the lease terms, the Company assesses whether these arrangements qualify for sales recognition under the deemed sale-leaseback transaction. If the arrangements do not qualify for sales recognition under the sale-leaseback accounting guidance, the Company continues to be the deemed owner of the build-to-suit assets for financial reporting purposes. The Company keeps the construction costs of the assets on its balance sheet. In addition, lease payments less the portion considered to be interest expense decrease the financing liability.

If a lease is modified and that modification is not accounted for as a separate contract, the classification of the lease is reassessed as of the effective date of the modification based on its modified terms and conditions and the facts and circumstances as of that date.

(k) Asset retirement costs

The Company’s asset retirement obligations are primarily related to its data center buildings, of which the majority are leased under long-term arrangements, and, in certain cases, are required to be returned to the landlords in their original condition.

The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The corresponding asset retirement costs are capitalized as part of the cost of leasehold improvements and are depreciated over the shorter of the estimated useful life of the asset or the term of the lease subsequent to the initial measurement. The Company accretes the liability in relation to the asset retirement obligations over time and the accretion expense is recorded in cost of revenue.

Asset retirement obligations are recorded in other long-term liabilities. The following table summarizes the activity of the asset retirement obligation liability:


Asset retirement obligations as of January 1, 2018		17,648
Additions		16,391
Accretion expense		1,840
Asset retirement obligations as of December 31, 2018		35,879
Additions		13,572
Accretion expense		2,990
Asset retirement obligations as of December 31, 2019		52,441
Additions		20,384
Accretion expense		4,084
Asset retirement obligations as of December 31, 2020		76,909

(l) Intangible assets

Intangible assets acquired in the acquisitions comprised of customer relationships and licenses.

The weighted-average amortization period by major intangible asset class is as follows:


Customer relationships		5-15 years
Licenses		20 years

Customer relationships represent the orders, backlog and customer lists, which arise from contractual rights or through means other than contracts. Customer relationships are amortized using a straight-line method, as the pattern in which the economic benefits of the intangible assets are consumed or used up cannot be reliably determined. The amortization period of customer relationships is determined based on the remaining contractual period of the contracts with the customers at the time of acquisition and an estimate of the contract renewal period.

Licenses are amortized using a straight-line method over the estimated beneficial period. The amortization period of licenses is determined based on the terms of those licenses.

(m) Prepaid land use rights

The land use rights represent the amounts paid and relevant costs incurred for the rights to use land in the PRC and Hong Kong SAR acquired before the adoption of ASC 842, and are carried at cost less accumulated amortization. Amortization is provided on a straight-line basis over the remaining terms of the land use right ranging from 26 to 41 years.

(n) Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in the acquisition that are not individually identified and separately recognized.

Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the stock prices, business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of the reporting unit, assignment of assets and liabilities to the reporting unit, assignment of goodwill to the reporting unit, and determination of the fair value of each reporting unit.

The Company has the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value prior to performing the goodwill impairment test. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the goodwill impairment test is not required. If the goodwill impairment test is required, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. In assessing the qualitative factors, the Company considered the impact of key factors such as changes in the general economic conditions, changes in industry and competitive environment, stock price, actual revenue performance compared to previous years, and cash flow generation. Based on the results of the qualitative assessment completed as of December 31, 2020, there were no indicators of impairment. No impairment losses were recorded for goodwill for the years ended December 31, 2018, 2019 and 2020.

(o) Impairment of long-lived assets

Long-lived assets (primarily including property and equipment, operating lease ROU assets and prepaid land use rights) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived assets or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. For the purposes of impairment testing of long-lived assets, the Company has concluded that an individual data center is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When there were circumstances that require a long-lived asset or asset group for certain data centers be tested for possible impairment, the Company compared undiscounted cash flows generated by that asset or asset group to its carrying amount. As a result of the test, the carrying amount of the long-lived assets or asset group is recoverable on an undiscounted cash flow basis. Accordingly, no impairment losses were recorded for long-lived assets for the years ended December 31, 2018, 2019 and 2020.

(p) Value-added-tax (“VAT”)

Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity by entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as VAT recoverable which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the consolidated balance sheets.

As of December 31, 2019 and 2020, the Company recorded a VAT recoverable of RMB129,994 and RMB155,620 in current assets, and RMB888,483 and RMB1,445,521 in non-current assets, respectively. The Company also recorded VAT payables of RMB7,886 and RMB6,838 in accrued expenses and other payables, in the consolidated balance sheets as of December 31, 2019 and 2020, respectively.

(q) Derivative financial instruments

Derivative financial instruments are recognized initially at fair value. At the end of each reporting period, the fair value is remeasured. The gain or loss on remeasurement to fair value is recognized immediately in profit or loss.

The Company entered into interest rate swap contracts primarily for the purpose to manage the interest rate risk for the long-term borrowings. The Company has elected not to apply hedge accounting to these derivative instruments and recognized all derivatives on the Company’s consolidated balance sheets at fair value. The Company estimates the fair value of its interest rate swap contracts using a pricing model based on market observable inputs. Fair value gains or losses associated with interest rate swap contracts are recorded within interest expenses in the Company’s consolidated statements of operations. Cash received or paid for realized gains or losses associated with interest rate swap contracts are included in operating cash flows in the consolidated statements of cash flows.

For further information on derivative financial instruments, see Note 16 below.

(r) Commitment and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

(s) Revenue recognition

The Company recognizes revenue as the Company satisfies a performance obligation by transferring control over a good or service to a customer. For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Company does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. Revenue is measured as the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

For contracts with customers that contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct or as a series of distinct obligations if the individual performance obligations meet the series criteria. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors.

The Company derives revenue primarily from the delivery of (i) colocation services; and (ii) managed services, including managed hosting services and managed cloud services. The remainder of the Company’s revenue is from IT equipment sales that are either sold on a stand-alone basis or bundled in a managed service contract arrangement and consulting services.

Colocation services are services where the Company provides space, power and cooling to customers for housing and operating their IT system equipment in the Company’s data centers.

Managed hosting services are services where the Company provides outsourced services to manage the customers’ data center operations, including data migration, IT operations, security and data storage.

Managed cloud services are services where the Company offers direct private connection to major cloud platforms, an innovative service platform for managing hybrid clouds and, where required, the resale of public cloud services.

Certain contracts with customers for colocation services and managed services provide for variable considerations that are primarily based on the usage of such services. Revenues on such contracts are recognized based on the agreed usage-based fees as the actual services are rendered throughout the contract term. Certain contracts with remaining customers provide for a fixed consideration over the contract service period. Revenue on such contracts are recognized on a straight-line basis over the term of the contract.

In certain colocation and managed hosting service contracts, the Company agrees to charge customers for their actual power consumption. Relevant revenue is recognized based on actual power consumption during each period. In certain other colocation and managed hosting service contracts, the Company specifies a fixed power consumption limit each month for customers. If a customer’s actual power consumption is below the limit, no additional fee is charged. If the actual power consumption is above the limit, the Company charges the customer additional power consumption fees calculated based on the portion of actual power consumption exceeding the limit, multiplied by a fixed unit price, which is determined based on market price, without providing the customer with any rights to acquire additional goods or services. Accordingly, relevant revenue is recognized each month based on actual additional power consumption fees.

The Company’s colocation service and managed service contracts with customers contain both lease and nonlease components. The Company elected to adopt the practical expedient which allows lessors to combine lease and non-lease components and account for them as one component if i) they have the same timing and pattern of transfer; and ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company elected to apply the practical expedient on the contracts that meet the conditions. In addition, the Company has performed a qualitative analysis to determine that the non-lease component is the predominant component of its revenue stream as the customer would ascribe more value to the services provided rather than to the lease component. Therefore, the combined component is accounted for in accordance with the current revenue accounting guidance (“ASC 606”). For contracts that do not meet the conditions required to adopt the practical expedient, the lease component is accounted for in accordance with the current lease accounting guidance (“ASC 842”), which is immaterial for the years ended December 31, 2019 and 2020. The Company has elected to apply the practical expedient on a prospective basis.

Revenue recognized for colocation or managed hosting and cloud services delivered prior to billing is recorded within accounts receivable. The Company generally bills the customer on a monthly or quarterly basis in arrears.

Cash received in advance from customers prior to the delivery of the colocation or managed hosting and cloud services is recorded as deferred revenue.

The sale of IT equipment is recognized when the customer obtains control of the equipment, which is typically when delivery has occurred, the customer accepts the equipment and the Company has no performance obligation after the delivery.

In certain managed service contracts, the Company sells and delivers IT equipment such as servers and computer terminals prior to the delivery of the services. Since sale of equipment can be distinguished and is separately identifiable from other promises in the contract and it is distinct within the context of the contract, the sale of equipment is considered a separate performance obligation. Accordingly, the contract consideration is allocated to the equipment and the managed services based on their relative standalone selling prices.

Consulting services are provided to customers for a fixed amount over the service period, usually less than one year. The Company recognizes revenues from consulting services over the period when the services were provided, since customers simultaneously receive and consume the benefit of the services. The Company uses the input method based on the pattern of service provided to the customers.

Revenue is generally recognized on a gross basis as the Company is primarily responsible for fulfilling the contract, assumes inventory risk and has discretion in establishing the price when selling to the customer. To the extent the Company does not meet the criteria for recognizing revenue on a gross basis, the Company records the revenue on a net basis.

(t) Cost of revenues

Cost of revenues consists primarily of utility costs, depreciation of property and equipment, rental costs, labor costs and other costs directly attributable to the provision of the service revenue.

(u) Research and development and advertising costs

Research and development and advertising costs are expensed as incurred. Research and development costs amounted to RMB13,915, RMB21,627 and RMB40,049 in 2018, 2019 and 2020, respectively. Research and development costs consist primarily of payroll and related personnel costs for developing or significantly improving the Company’s services and products.

Advertising costs amounted to RMB6,332, RMB7,454 and RMB14,778 in 2018, 2019 and 2020, respectively.

(v) Government grants

Government grants are recognized when received and when all the conditions for their receipt have been met. Subsidies that compensate the Company for expenses incurred are recognized as a reduction of expenses in the consolidated statements of operations. Subsidies that are not associated with expenses are recognized as other income.

Subsidies for the acquisition of property and equipment are recorded as a liability until earned and then depreciated over the useful life of the related assets as a reduction of the depreciation charges. Subsidies for obtaining the rights to use land are recorded as a liability until earned and then amortized over the land use right period as a reduction of the amortization charges of the related land use rights. In 2010 and 2011, the Company received government subsidies that required the Company to operate in a particular area for a certain period. The Company recorded the subsidies in other long-term liabilities when the subsidies were received and subsequently recognized as government subsidy income ratably over the period the Company is required to operate in the area. In 2017, the Company received government subsidies that required the Company to pass certain inspection on the related project . The Company recorded such subsidies in other long-term liabilities when received , which are reclassified to accrued expenses and other payables when the inspection is expected to be completed within one year, and will be recorded as government subsidy income when the conditions are met.

As of December 31, 2019 and 2020, deferred government grants of RMB6,507 and RMB6,196 are recorded in other long-term liabilities, respectively. Deferred government grants of RMB6,003 and nil are recorded in accrued expenses and other payables in the consolidated balance sheets as of December 31, 2019 and 2020, respectively.

(w) Capitalized interest

A reconciliation of total interest costs to ‘‘Interest expenses’’ as reported in the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 is as follows:


	Years ended December 31,
	2018	2019	2020

Total interest costs	749,730	1,040,898	1,402,015
Less: interest costs capitalized	(93,544)	(72,205)	(85,509)

Interest expenses	656,186	968,693	1,316,506

Interest costs that are directly attributable to the construction of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of that asset. The capitalization of interest costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, interest costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of interest costs is ceased when the asset is substantially complete and ready for its intended use.

(x) Debt issuance costs

Debt issuance costs are capitalized and are amortized over the life of the related debts based on the effective interest method. Such amortization is included as a component of interest expense.

Unamortised debt issuance costs of RMB273,822 and RMB226,085 are presented as a reduction of debt as of December 31, 2019 and 2020, respectively.

(y) Income tax

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.

(z) Share-based compensation

The Company accounts for the compensation cost from share-based payment transactions with employees based on the grant-date fair value of the equity instrument issued. The grant-date fair value of the award is recognized as compensation expense, net of forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date.

Awards granted to employees with performance conditions attached are measured at fair value on the grant date and are recognized as the compensation expenses in the period and thereafter when the performance goal becomes probable to achieve. Awards granted to employees with market conditions attached are measured at fair value on the grant date and are recognized as the compensation expenses over the estimated requisite service period, regardless of whether the market condition has been satisfied if the requisite service period is fulfilled.

The Company recognizes the estimated compensation cost of service-based restricted share based on the fair value of its ordinary shares on the date of the grant. The Company recognizes the compensation cost, net of forfeitures, over its respective vesting term. The Company recognizes the estimated compensation cost of performance-based restricted share based on the fair value of its ordinary shares on the date of the grant. The rewards are earned upon attainment of identified performance goals. The Company recognizes the compensation cost, net of forfeitures, over the performance period. The Company also adjusts the compensation cost based on the probability of performance goal achievement at the end of each reporting period.

The Company accounts for forfeitures when they occur. Compensation cost previously recognized are reversed in the period the award is forfeited, for an award that is forfeited before completion of the requisite service period.

Share-based payment transactions with nonemployees in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of either the date on which the counterparty’s performance is complete or the date at which a commitment for performance by the counterparty to earn the equity instrument is reached.

For further information on share-based compensation, see Note 19 below.

(aa) Employee benefits

Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 28% to 49% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of operations when the related service is provided.

(bb) Foreign currency translation and foreign currency risks

The functional currency of GDS Holdings is the United States dollar(“USD”) whereas the functional currency of its PRC subsidiaries and consolidated VIEs in PRC, subsidiaries in Hong Kong SAR and subsidiaries in Singapore is the RMB, Hong Kong dollar (“HKD”) and Singapore dollar (“SGD”), respectively. The reporting currency of the Company is RMB as the major operations of the Company are within the PRC.

Transactions denominated in currencies other than the functional currency are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet dates. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are recognized in profit or loss and are reported in foreign currency exchange gain (loss) on a net basis.

The results of foreign operations are translated into RMB at the exchange rates as of the balance sheet date for assets and liabilities, the average daily exchange rate for each month for income and expense items and the historical exchange rates for equity accounts. Translation gains and losses are recorded in other comprehensive income and accumulated in the translation adjustment component of equity until the sale or liquidation of the foreign entity.

The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of the RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Company’s cash and restricted cash denominated in RMB amounted to RMB2,119,758 and RMB3,554,424 as of December 31, 2019 and 2020, respectively.

As of December 31, 2020, the Company’s cash and restricted cash were deposited in major financial institutions located in PRC, Hong Kong SAR, US and Singapore, and were denominated in the following currencies:


	RMB	USD	HKD	JPY	EUR	SGD
In PRC	3,528,438	1,337,547	—	—	—	—
In Hong Kong SAR	25,986	511,405	185,909	35,821	146	—
In US	—	10,271	—	—	—	—
In Singapore	—	97,757	—	—	—	1,927
Total in original currency	3,554,424	1,956,980	185,909	35,821	146	1,927
RMB equivalent	3,554,424	12,769,100	156,461	2,265	1,175	9,504

(cc) Concentration of credit risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalent, restricted cash, and accounts receivable. The Company’s investment policy requires cash and cash equivalents and restricted cash to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. The Company regularly evaluates the credit standing of the counterparties or financial institutions.

The Company conducts credit evaluations on its customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site visits by senior management. Based on this analysis, the Company determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Company will not deliver the services or sell the products to the customer or require the customer to pay cash, post letters of credit to secure payment or to make significant down payments. Historically, credit losses on accounts receivable have been insignificant.

(dd) Earnings (loss) per share

Basic earnings (loss) per ordinary share is computed by dividing net income (loss) available to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income (loss) available to the Company’s ordinary shareholders is allocated between ordinary shares and other participating securities based on participating rights in undistributed earnings. The Company’s redeemable preferred shares (Note 14) are participating securities since the holders of these securities participate in dividends on the same basis as ordinary shareholders. These participating securities are not included in the computation of basic loss per ordinary share in periods when the Company reports net loss, because these participating security holders have no obligation to share in the losses of the Company.

Diluted earnings (loss) per share is calculated by dividing net income (loss) available to the Company’s ordinary shareholders as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary and dilutive ordinary share equivalents outstanding during the year. Ordinary share equivalents include the ordinary shares issuable upon the exercise of the outstanding share options (using the treasury stock method) and conversion of redeemable preferred shares and convertible bonds (using the as-if-converted method). Potential dilutive securities are not included in the calculation of diluted earnings (loss) per share if the impact is anti-dilutive.

(ee) Changes in accounting principle

The Company adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2020. This ASU changes the fair value measurement disclosure requirements of ASC 820. Under this ASU, key provisions include new, eliminated and modified disclosure. The adoption of this ASU does not have a material impact on the consolidated financial statements.

The Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment on January 1, 2020. This ASU is to simplify the subsequent measurement of goodwill. The ASU eliminates step 2 from the goodwill impairment test and the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU is applied on a prospective basis. The adoption of this standard does not have impact on the Company’s consolidated financial statements.

The Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and subsequent amendments to the initial guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, collectively referred to as “ASC 326” on January 1, 2020 using the modified retrospective approach. ASC 326 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASC 326 eliminates the probable initial recognition threshold in current GAAP and, instead, reflects an entity’s current estimate of all expected credit losses. This adoption did not have material impact on the Company’s consolidated financial statements.

(ff) Recently issued accounting standards

In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted including adoption in any interim period for periods for which financial statements have not yet been issued. The adoption of this standard is not expected to have a significant impact on its consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarifies the interaction for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to have a significant impact on its consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), which reduces the number of accounting models for convertible debt instruments and convertible preferred stock and clarifies the scope and certain requirements under Subtopic 815-40. The ASU also improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract in entity’s own equity. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact on the adoption of this standard will have on its consolidated financial statements.

In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs, which clarifies that an entity should reevaluate for each reporting period whether a callable debt security is within the scope of certain guidance in ASC 310-20 that was issued in ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The adoption of this standard is not expected to have a significant impact on its consolidated financial statements.

CASH AND RESTRICTED CASH

12 Months Ended

Dec. 31, 2020

CASH AND RESTRICTED CASH

CASH AND RESTRICTED CASH

3 CASH AND RESTRICTED CASH

A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statements of cash flows is as follows:



	As of December 31,
	2019	2020

Cash	5,810,938	16,259,457
Restricted cash - current assets	34,299	86,829
Restricted cash - non-current assets	128,025	146,643

Total cash and restricted cash shown in the consolidated statements of cash flows	5,973,262	16,492,929

Restricted cash included in non-current assets was to secure the repayment of long-term bank borrowings and related interests.

CONTRACT BALANCES

12 Months Ended

Dec. 31, 2020

CONTRACT BALANCES

CONTRACT BALANCES

4 CONTRACT BALANCES

Accounts Receivable, Net

Accounts receivable, net consisted of the following:


	As of December 31,
	2019	2020

Accounts receivable	881,177	1,482,498
Less: allowance for doubtful accounts	(133)	(2,163)
Accounts receivable, net	881,044	1,480,335

Including:
- Current portion	879,962	1,480,335
- Non-current portion	1,082	—

As of December 31, 2019 and 2020, the accounts receivable expected to be received after one year amounted to RMB1,082 and nil were recorded in other non-current assets in the consolidated balance sheet, respectively.

Accounts receivable of RMB520,382 and RMB819,578 was pledged as security for bank loans (Note 9) as of December 31, 2019 and 2020, respectively. Accounts receivable of RMB128,353 was pledged as security for finance lease and other financing obligations (Note 12) as of December 31, 2020.

The following table presents the movement of the allowance for doubtful accounts:


	Years ended December 31,
	2018	2019	2020

Balance at the beginning of the year	—	241	133
Allowance made during the year	241	274	2,032
Write-off during the year	—	(382)	—
Foreign exchange impact	—	—	(2)
Balance at the end of the year	241	133	2,163

During the years ended December 31, 2018, 2019 and 2020, the Company made an allowance on accounts receivable of RMB241, RMB274 and RMB2,032, respectively.

Deferred Revenue

The opening and closing balances of the Company’s deferred revenue are as following:


		Deferred revenue

Beginning balance as of January 1, 2020		105,735
Increase		5,804

Closing balance as of December 31, 2020		111,539

The difference between the opening and closing balances of the Company’s deferred revenue primarily results from the timing difference between the satisfaction of the Company’s performance obligation and the customer’s payment. As of December 31, 2019 and 2020, the deferred revenue expected to be recognized as revenue after one year amounted to RMB15,419 and RMB14,871, respectively, were recorded in other long-term liabilities in the consolidated balance sheet. The amounts of revenue recognized during the years ended December 31, 2018, 2019 and 2020 from the opening deferred revenue balance was RMB43,192, RMB66,500 and RMB96,084, respectively.

Remaining performance obligations

The Company elected to apply the practical expedient that allows the Company not to disclose the remaining performance obligations for variable considerations. This includes usage-based contracts for certain colocation and managed hosting services.

As of December 31, 2020, approximately RMB 2,261,990 of total revenues and deferred revenues, excluding any variable considerations, are expected to be recognized in future periods, the majority of which will be recognized over the next four years.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

5 PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:


	As of December 31,
	2019	2020
At cost:
Land	855,310	808,651
Buildings	5,964,048	9,552,953
Data center equipment	5,567,606	10,694,057
Leasehold improvement	6,111,733	7,307,207
Furniture and office equipment	61,974	97,039
Vehicles	4,115	4,383
	18,564,786	28,464,290
Less: Accumulated depreciation	(2,580,320)	(4,127,504)
	15,984,466	24,336,786
Construction in progress	3,200,173	5,259,275
Property and equipment, net	19,184,639	29,596,061

(1)

The carrying amounts of the Company’s property and equipment acquired under finance leases and other financing arrangement were RMB6,070,349 and RMB8,207,825 as of December 31, 2019 and 2020, respectively.

(2)

Depreciation of property and equipment (including assets acquired under finance leases and other financing arrangement) was RMB682,451, RMB1,057,171 and RMB1,543,130 for the years ended December 31, 2018, 2019 and 2020, respectively, and included in the following captions:


	Years ended December 31,
	2018	2019	2020

Cost of revenue	674,560	1,045,446	1,418,846
General and administrative expenses	7,319	10,448	120,604
Research and development expenses	572	1,277	3,680
	682,451	1,057,171	1,543,130

(3)

Property and equipment with net a book value of RMB2,493,872 and RMB3,497,447 was pledged as security for bank loans (Note 9) and other financing obligations (Note 12) as of December 31, 2019 and 2020, respectively.

(4)

As of December 31, 2019 and 2020, payables for purchase of property and equipment that are contractually due beyond one year of RMB231,458 and RMB139,162, respectively, are recorded in other long-term liabilities in the consolidated balance sheets.

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2020

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

6 INTANGIBLE ASSETS, NET

Intangible assets consisted of the following:


		As of December 31,
	Note	2019	2020

Customer relationships	8	547,322	952,100
Licenses		6,000	15,782
		553,322	967,882
Less: accumulated amortization		(158,694)	(182,560)
Intangible assets, net		394,628	785,322

The Company’s customer relationships were acquired in business combinations (Note 8). Amortization of intangible assets was RMB52,974, RMB58,312 and RMB68,688 for the years ended December 31, 2018, 2019 and 2020, respectively.

Estimated future amortization expense related to these intangible assets is as follows:


Fiscal year ending December 31,
2021		114,844
2022		114,844
2023		113,302
2024		106,443
2025		92,131
Thereafter		243,758
Total		785,322

PREPAID LAND USE RIGHTS

12 Months Ended

Dec. 31, 2020

PREPAID LAND USE RIGHTS

PREPAID LAND USE RIGHTS

7 PREPAID LAND USE RIGHTS

Prepaid land use rights, representing the amounts paid and relevant costs incurred for the rights to use land in the PRC and Hong Kong SAR acquired before the adoption of ASC 842, consisted of the following:


	As of December 31,
	2019	2020

Prepaid land use rights	782,319	736,695
Less: Accumulated amortization	(35,132)	(58,505)
Prepaid land use rights, net	747,187	678,190

Amortization of prepaid land use rights was RMB6,082, RMB26,393 and RMB26,656 for the years ended December 31, 2018, 2019 and 2020, respectively.

Prepaid land use rights with a net book value of RMB741,032 and RMB678,190 were pledged as security for bank loans (Note 9) as of December 31, 2019 and 2020, respectively.

Upon the adoption of ASC 842 on January 1, 2019, land use rights acquired are assessed in accordance with ASC 842 and recognized in operating lease right-of-use assets if they meet the definition of operating lease, or property and equipment if they meet the definition of finance lease (Note (2)(j)).

BUSINESS COMBINATIONS

12 Months Ended

Dec. 31, 2020

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

8 BUSINESS COMBINATIONS

The movement of goodwill is set out as below:


	As of December 31,
	2019	2020

Balance at the beginning of the year	1,751,970	1,905,840
Addition during the year	153,870	746,015
Measurement period adjustments	—	(55,462)
Balance at end of year	1,905,840	2,596,393

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. The goodwill is not deductible for tax purposes. Goodwill is assigned to the design, build-out and operation of data centers reporting unit.

Guangzhou 3 Acquisition

On May 2, 2018, the Company consummated an acquisition of all equity interests in a target group comprising onshore and offshore entities from third parties for an aggregate cash consideration of RMB262,244 (including contingent considerations of RMB245,244). As of the acquisition date, the Company estimated that, pursuant to the share purchase agreement, all specified conditions would be met and the Company would be obligated to settle full amount of the purchase price of RMB262,244. As of December 31, 2019, the fair value of remaining consideration payable was RMB118,336, of which RMB95,274 and RMB23,062 were recorded in other payables and other long-term liabilities, respectively. Pursuant to a supplemental agreement entered into between the seller and the Company in May 2020, both parties agreed to reduce the total cash consideration (including contingent consideration) from RMB262,244 to RMB207,310, subject to the achievement of the revised conditions as set out in the supplemental agreement. The adjustment of the cash consideration of RMB55,154 was recognized as gain from purchase price adjustment in the consolidated statement of operations for the year ended December 31, 2020. As of December 31, 2020, the fair value of remaining consideration payable was RMB36,412, which was recorded in other payables. The payment schedule of remaining consideration is based on the milestone related to the achievement of all specified conditions.

The target group owns a data center project (“Guangzhou 3”) in Guangzhou, China.

The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair value on the acquisition date and consisted of the following major items.


	Note
Fair value of consideration	(i)	247,937
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(62)
Accounts receivable		(13,995)
Property and equipment	(ii)	(780,312)
Identifiable intangible assets	(iii)	(130,000)
Other assets		(43,039)
Accounts payable		471,532
Finance lease and other financing obligations, non-current		282,051
Short-term borrowings		47,580
Long-term borrowings		30,000
Deferred tax liabilities		26,503
Other liabilities		2,849
Total identifiable net assets		(106,893)
Goodwill	(iv)	141,044

Note (i):The fair value of consideration represents the present value of the purchase price of RMB262,244.

Note (ii):Property and equipment acquired included properties acquired under finance lease of RMB291,000.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB130,000 with an estimated useful life of 7 years.

Note (iv):

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target group with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

The amounts of net revenue and net loss of the target group included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2018 amounted to RMB85,298 and RMB11,727, respectively.

Shanghai 11 Acquisition

On June 1, 2018, the Company consummated an acquisition of all equity interests in a target entity from third parties for an aggregate cash consideration of RMB320,000 (including contingent considerations of RMB70,000). As of the acquisition date, the Company estimated that, pursuant to the share purchase agreement, all specified conditions would be met and the Company would be obligated to settle full amount of the purchase price of RMB320,000. As of December 31, 2020, the Company had fully paid the consideration.

The target entity owns a data center project ("Shanghai 11") in Shanghai, China.

The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair value on the acquisition date and consisted of the following major items.


	Note
Fair value of consideration	(i)	319,119
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(404)
Property and equipment		(233,405)
Identifiable intangible assets	(ii)	(57,000)
Other assets		(94,647)
Accounts payable		91,136
Deferred tax liabilities		9,995
Other liabilities		5,377
Total identifiable net assets		(278,948)
Goodwill	(iii)	40,171

Note (i):

The fair value of the consideration represents the present value of the purchase price of RMB320,000.

Note (ii):

Identifiable intangible assets acquired consisted of customer relationships of RMB23,000 with an estimated useful life of 10 years and favourable lease of RMB34,000 with an estimated useful life of 13.6 years. The favourable lease was reclassified to operating lease ROU assets upon adoption of ASC 842, Leases, on January 1, 2019.

Note (iii):

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target entity with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

The amounts of net revenue and net loss of the target entity included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2018 amounted to RMB35,489 and RMB2,924, respectively.

Guangzhou 6 Acquisition

On October 18, 2019, the Company consummated an acquisition of all equity interests in a target entity from a third party for an aggregate cash consideration of RMB431,727 (including contingent considerations of RMB243,736). As of the acquisition date, the Company estimated that, pursuant to the share purchase agreement, all specified conditions would be met and the Company would be obligated to settle full amount of the purchase price of RMB431,727. As of December 31, 2020, the fair value of remaining consideration payable was RMB225,920, which was recorded in other payables. The payment schedule of remaining consideration is based on the milestone related to the achievement of all specified conditions.

The target entity owns a data center project ("Guangzhou 6") in Guangzhou, China.

The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair value on the acquisition date and consisted of the following major items.


	Note
Fair value of consideration	(i)	423,075
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(12,091)
Property and equipment	(ii)	(493,026)
Operating lease ROU assets		(9,168)
Identifiable intangible assets	(iii)	(15,000)
Other assets		(44,549)
Accounts payable		118,486
Finance lease and other financing obligations, current		16,828
Operating lease liabilities, current		886
Finance lease and other financing obligations, non-current		157,366
Operating lease liabilities, non-current		8,282
Deferred tax liabilities		1,040
Other liabilities		1,741
Total identifiable net assets		(269,205)
Goodwill	(iv)	153,870

Note (i):

The fair value of consideration represents the present value of the purchase price of RMB431,727.

Note (ii):

Property and equipment acquired included properties acquired under finance lease of RMB174,194.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB15,000 with an estimated useful life of 7.8 years.

Note (iv):

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target entity with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

The amounts of net revenue and net loss of the target entity included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2019 amounted to nil and RMB8,816, respectively.

Beijing 10, Beijing 11 and Beijing 12 Acquisition

On June 5, 2020, the Company consummated an acquisition of all equity interests in a target group from third parties. The target group owns three data center projects (“Beijing 10, Beijing 11 and Beijing 12”) in Beijing, China. Pursuant to the share purchase agreement, the considerations included purchase price adjustments resulting from the differences between the fair value of certain assets and liabilities on the date of acquisition compared to the estimated fair value used to determine the closing considerations. The Company initially estimated the considerations to be RMB847,586 (including contingent considerations of RMB130,720). Subsequent to the Company’s reporting of the provisional amounts recognized for this acquisition in its consolidated financial statements as of and for the six months ended June 30, 2020, additional information was obtained related to facts and circumstances that existed as of the acquisition date. Based on the additional information, the Company has revised its estimate for the aggregate cash consideration to RMB788,554 (including contingent considerations of RMB133,032) and the fair value measurements of certain assets acquired and liabilities assumed.

The identifiable assets acquired and liabilities assumed were recorded at their provisional amounts on the acquisition date and consisted of the following major items.


		Estimated
		fair value, as		Estimated
		previously	Adjustments	fair value, as
	Note	reported	(Note (v))	adjusted
Fair value of consideration		847,586	(59,032)	788,554
Effective settlement of pre-existing relationships upon consolidation	(i)	34,477		34,477
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(2,349)		(2,349)
Accounts receivable		(81,027)	(2,107)	(83,134)
Property and equipment	(ii)	(1,971,432)	(36,176)	(2,007,608)
Operating lease ROU assets		(94,821)		(94,821)
Identifiable intangible assets	(iii)	(191,000)		(191,000)
Other assets		(149,956)	7,327	(142,629)
Accounts payable		727,043	29,864	756,907
Finance lease and other financing obligations, current		171,979	2,980	174,959
Operating lease liabilities, current		6,092	890	6,982
Finance lease and other financing obligations, non-current		1,062,114		1,062,114
Operating lease liabilities, non-current		92,360		92,360
Deferred tax liabilities		13,833		13,833
Other liabilities		38,586	792	39,378
Total identifiable net assets		(378,578)	3,570	(375,008)
Goodwill	(iv)	503,485	(55,462)	448,023

Note (i):

Prior to the acquisition, the Company had receivables from the target group of RMB34,477, which was effectively settled upon completion of the acquisition.

Note (ii):

Property and equipment acquired included properties acquired under finance lease of RMB632,427.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB191,000 with an estimated useful life of 7.6 years.

Note (iv):

Note (v):

The adjustments noted in the table above were a result of information obtained subsequent to the Company’s initial reporting of provisional amounts in accordance with ASC 805, Business Combinations.

The Company estimated that, pursuant to the share purchase agreement, all specified conditions related to the contingent considerations would be met and the Company would be required to settle full amount of the revised purchase price of RMB788,554. As of December 31, 2020, the fair value of remaining consideration payable was RMB55,094, which was recorded in other payables. The payment schedule of remaining consideration is based on the milestone related to the achievement of all specified conditions.

The amounts of net revenue and net profit of the target group included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2020 amounted to RMB281,926 and RMB14,083, respectively.

Shanghai 19 Acquisition

On November 17, 2020, the Company consummated an acquisition of all equity interests in a target group from third parties for an aggregate cash consideration of RMB62,480, which was fully paid during 2020.

The target group owns a data center project (“Shanghai 19 Phase I and II”) in Shanghai, China.

The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair value on the acquisition date and consisted of the following major items.


	Note
Fair value of consideration		62,480
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(2,001)
Property and equipment		(372,093)
Operating lease ROU assets		(215,230)
Identifiable intangible assets	(i)	(56,100)
Other assets		(18,354)
Accounts payable		360,381
Operating lease liabilities, current		2,676
Operating lease liabilities, non-current		186,532
Deferred tax liabilities		16,322
Other liabilities		69,122
Total identifiable net assets		(28,745)
Goodwill	(ii)	33,735

Note (i):

Identifiable intangible assets acquired consisted of customer relationships of RMB56,100 with an estimated useful life of 12.1 years.

Note (ii):

The amounts of net revenue and net loss of the target group included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2020 were immaterial.

Beijing 9 Acquisition

On December 18, 2020, the Company consummated an acquisition of all equity interests in a target entity from a third party for an aggregate cash consideration of RMB816,969 (including contingent considerations of RMB463,496). As of December 31, 2020, the fair value of remaining consideration payable was RMB448,304, which was recorded in other payables. The payment schedule of remaining consideration is based on the milestone related to the achievement of all specified conditions.

The target entity owns a data center project (“Beijing 9”) in Beijing, China.

The identifiable assets acquired and liabilities assumed in the business combination were recorded at their provisional amounts on the acquisition date and consisted of the following major items.


	Note
Fair value of consideration	(i)	793,043
Effective settlement of pre-existing relationships upon consolidation	(ii)	(65,706)
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(451)
Accounts receivable		(55,072)
Property and equipment	(iii)	(403,556)
Operating lease ROU assets		(82,729)
Identifiable intangible assets	(iv)	(202,500)
Other assets		(70,149)
Accounts payable		16,472
Finance lease and other financing obligations, current		8,028
Operating lease liabilities, current		6,568
Finance lease and other financing obligations, non-current		117,002
Operating lease liabilities, non-current		95,729
Deferred tax liabilities		44,965
Other liabilities		7,151
Total identifiable net assets		(518,542)
Goodwill	(v)	208,795

Note (i): The fair value of consideration represents the present value of the estimated purchase price of RMB811,507 after deduction of a contingent consideration of RMB5,462 not expected to be paid.

Note (ii):Prior to the acquisition, the Company had payables to the target entity of RMB65,706, which was effectively settled upon completion of the acquisition.

Note (iii):Property and equipment acquired included properties acquired under finance lease of RMB101,113.

Note (iv):Identifiable intangible assets acquired consisted of customer relationships of RMB202,500 with an estimated useful life of 6.5 years.

Note (v):Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target entity with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

The amounts of net revenue and net profit of the target entity included in the Company’s consolidated statements of operations from the acquisition date to December 31, 2020 were immaterial.

Supplemental pro forma financial information as if the acquisitions had occurred as of the earliest date presented has not been provided as the acquisitions are not material to the Company’s results of operations in 2020.

Asset acquisitions in 2018, 2019 and 2020

In 2018, 2019 and 2020, the Company consummated several acquisitions of certain target entities. These target entities did not meet the definition of a business as of the acquisition date in accordance with ASC 805 Business Combinations, and the acquisitions were accounted for as assets acquisitions. The primary assets acquired were properties self-owned or under finance leases, equipment and leasehold improvements.

LOANS AND BORROWINGS

12 Months Ended

Dec. 31, 2020

LOANS AND BORROWINGS

LOANS AND BORROWINGS

9 LOANS AND BORROWINGS

The Company’s borrowings consisted of the following:


	As of December 31,
	2019	2020

Short-term borrowings	397,213	1,230,756
Current portion of long-term borrowings	740,524	922,634
Sub-total	1,137,737	2,153,390
Long-term borrowings, excluding current portion	8,028,473	10,566,746
Total loans and borrowings	9,166,210	12,720,136

Short-term borrowings

The Company’s short-term borrowings consisted of the following:


	As of December 31,
	2019	2020

Unsecured short-term loans and borrowings	80,000	221,436
Secured short-term loans and borrowings	317,213	1,009,320
	397,213	1,230,756

Short-term borrowings were secured by the following assets:


	As of December 31,
	2019	2020

Accounts receivable	11,535	76,547

The weighted average interest rates of short-term borrowings outstanding as of December 31, 2019 and 2020 were 5.64% and 4.67% per annum, respectively.

Long-term borrowings

The Company’s long-term borrowings consisted of the following:


	As of December 31,
	2019	2020

Unsecured long-term loans and borrowings	42,500	112,500
Secured long-term loans and borrowings	8,726,497	11,376,880
	8,768,997	11,489,380

Long-term borrowings were secured by the following assets:


	As of December 31,
	2019	2020

Accounts receivable	508,847	743,031
Property and equipment, net	2,493,872	2,918,670
Prepaid land use rights, net	741,032	678,190
Operating lease ROU assets	—	599,120
	3,743,751	4,939,011

The weighted average interest rates of long-term borrowings as of December 31, 2019 and 2020 were 7.40% and 6.73% per annum, respectively, taking into the consideration of debt issuance costs incurred relating to the facilities.

The outstanding long-term borrowings mature serially from 2021 to 2034. The aggregate maturities of the above long-term borrowings for each for the five years and thereafter subsequent to December 31, 2020 are as follows:



		Long-term borrowings
Twelve months ending December 31,
2021		922,634
2022		1,585,344
2023		2,581,585
2024		2,020,680
2025		1,406,764
Thereafter		2,972,373
		11,489,380

The Company entered into secured loan agreements with various financial institutions for project development and working capital purpose with terms ranging from 1 to 15 years.

As of December 31, 2020, the Company had total working capital and project financing credit facilities of RMB23,421,419 from various financial institutions, of which the unused amount was RMB10,505,516. As of December 31, 2020, the Company had drawn down RMB12,915,903, of which RMB1,229,377 (net of debt issuance costs of RMB1,211) was recorded in short-term loans and borrowings and RMB11,489,380 (net of debt issuance costs of RMB195,935) was recorded in long-term loans and borrowings, respectively. Drawdowns from the credit facility are subject to the approval of the banks and are subject to the terms and conditions of each agreement.

More specifically, the terms of these secured loan facility agreements generally include one or more of the following conditions. If any of the below conditions were to be triggered, the Company could be obligated to notify the lender or repay any loans outstanding immediately or on an accelerated repayment schedule:

(i)

STT Communications Ltd. ceases to, directly or indirectly, own at least 50.1% of the equity interests of STT GDC Pte. Ltd. (“STT GDC”);

(ii)

STT GDC (a) is not or ceases to, directly or indirectly, be the beneficial owner of at least 25% of the issued share capital of GDS Holdings, or (b) does not or ceases to have the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to cast, or control the casting of, at least 25% of the votes that may be cast at a meeting of the board of directors (or similar governing body) of GDS Holdings, or (c) is not or ceases to be the single largest shareholder of GDS Holdings;

(iii)

GDS Holdings and GDS Investment Company are not or cease to be, directly or indirectly, the legal and beneficial owner of 100% of the equity interests of, and have the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to control, GDS Investment Company (in the case of GDS Holdings), GDS Beijing, Global Data Solutions Co., Ltd. (“GDS Suzhou”), a subsidiary company of GDS Beijing and the relevant borrowing subsidiaries;

(iv)

Management HoldCo ceases to, directly or indirectly, own at least 100% of the equity interests of and have the power to control GDS Beijing or GDS Suzhou;

(v)

GDS Beijing, GDS Suzhou and the relevant borrowing subsidiaries cease to, directly or indirectly, be the legal and beneficial owner of 100% of the equity interests of, and have the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to control, their consolidated subsidiaries;

(vi)

there are changes in the shareholding structure of a principal operating subsidiary of GDS Holdings, as defined in the relevant loan facility agreement; and

(vii)

the IDC license of GDS Beijing, the borrowing subsidiaries, other affiliated entities, or the authorization by GDS Beijing to one such subsidiary to operate the data center business and provide IDC services under the auspices of the IDC license held by GDS Beijing, is cancelled or fail to be renewed on or before the expiry date.

There are certain other events in the loan facility agreements the occurrence of which could obligate GDS Holdings to notify the lender or repay any loans outstanding immediately or on an accelerated repayment schedule,including, among others, if the borrowing subsidiary fails to use the loan in accordance with the use of proceeds as provided in the loan facility agreement, the borrowing subsidiary violates or fails to perform any of its commitments under the loan facility agreement, or if GDS Holdings fails to maintain its shares listed on at least one of the following stock exchanges before the maturity date under the relevant loan facility agreement : (i) Nasdaq; or (ii) The Singapore Exchange Securities Trading Limited; or (iii) The Stock Exchange of Hong Kong Limited; or (iv) any other stock exchange acceptable to the lender. In addition, the terms of these loan agreements include financial covenants that limit certain financial ratios, such as the interest coverage ratio and gross leverage ratio, during the relevant period, as defined in the agreements. The terms of these loan agreements also include cross default provisions which could be triggered if the Company (i) fails to repay any financial indebtedness in an aggregate amount exceeding US$4,500, or,in some cases, RMB50,000, when due or within any originally applicable grace period; (ii) fails to repay any financial indebtedness or perform any of its obligations under any agreement which could have a material adverse effect on its performance of the loan facility agreements; (iii) fails to repay any financial indebtedness raised with any financial institution; or (iv) fails to perform any loan facility agreement with any financial institution which could result in immediate or accelerated repayment of the financial indebtedness or downgrading of the borrowing subsidiary by any credit rating agency administered by the People’s Bank of China (“PBOC”) in accordance with the regulations promulgated by PBOC governing loan market rating standards. As of December 31, 2020, the Company was in compliance with all of the abovementioned covenants.

CONVERTIBLE BONDS PAYABLE

12 Months Ended

Dec. 31, 2020

CONVERTIBLE BONDS PAYABLE

CONVERTIBLE BONDS PAYABLE

10 CONVERTIBLE BONDS PAYABLE

Convertible Notes due June 1, 2025 issued by the Company (“Convertible Bonds due 2025”)

On June 5, 2018, the Company completed its issuance of Convertible Bonds due 2025 in an aggregate principal amount of US$300,000. The related issuance costs of US$8,948 were deducted from principal of the Convertible Bonds due 2025 and amortized over the period from issuance to the first put date (i.e. June 1, 2023) using the effective interest rate method. As of December 31, 2020, accrued interests of RMB3,262 were recorded in accrued expenses.

The key terms of the Convertible Bonds due 2025 are summarized as follows:

Maturity Date

●

June 1, 2025

Interest

●

2.0% per annum, accruing from June 5, 2018 (computed on the basis of 360-day year composed of twelve 30-day months), payable semiannually in arrears on June 1 and December 1 of each year

Repurchase of Notes

●

Holders will have the right to require the Company to repurchase for cash all of their notes, or any portion of the principal thereof that is equal to US$1 thousand or an integral multiple of US$1 thousand, on June 1, 2023 or if a fundamental change occurs at any time.

Tax redemption

●

The Company may redeem, at its option, all but not part of the Convertible Bonds due 2025 if it becomes obligated to pay to the holder of any note “additional amounts” (which are more than a de minimis amount) as a result of any change in tax law at the price equal to 100% of the principal amount together with accrued and unpaid interest. Upon receiving notice of redemption, each holder will have the right to elect to: convert its notes; or not have its notes redeemed and GDS Holdings will not pay any additional amounts as a result of such change in tax law.

Conversion rights

●

Holders may convert their notes at their option at any time prior to the close of business on the third scheduled trading day immediately preceding the maturity date.

●

The conversion rate is initially 19.3865 ADSs of the Company per US$1 thousand principal amount of notes (equivalent to an initial conversion price of approximately US$51.58 per ADS), and subject to changes under certain anti-dilution conditions.

The Company determined that the embedded conversion option of the Convertible Bonds due 2025 was not required to be accounted for as an embedded derivative pursuant to ASC 815 Derivatives and Hedging. The Company also determined that there was no embedded beneficial conversion feature (“BCF”) attributable to Convertible Bonds due 2025 at the commitment date because the initial conversion price of Convertible Bonds due 2025 was greater than the fair value of the Company’s ordinary shares. Contingent BCF will be assessed upon occurrence of an adjusting event to the conversion price. The Company also determined there was no other embedded derivative to be separated from the Convertible Bonds due 2025.

In the year ended December 31, 2020, Convertible Bonds with principal amount of US$10 were converted into ordinary shares as the holders exercised their conversion option. The Company recorded additional paid-in capital of RMB65 upon conversion. As of December 31, 2020, the outstanding principal amount of Convertible Bonds due 2025 was US$299,990.

The effective interest rate of the convertible bonds, after considering the related issuance cost, was 2.65% as of December 31, 2019 and 2020, respectively.

ACCRUED EXPENSES AND OTHER PAYABLES

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER PAYABLES

ACCRUED EXPENSES AND OTHER PAYABLES

11 ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consisted of the following:


	As of December 31,
	2019	2020

Accrued interest expenses	43,776	65,390
Accrued debt issuance costs and other financing costs	28,082	32,512
Income tax payable	93,307	102,683
Other tax payables	28,259	39,372
Consideration payables for acquisitions	362,032	888,693
Deferred government grants	6,003	—
Accrued payroll and welfare benefits	97,486	114,632
Accrued professional fees	41,630	15,281
Accrued data center outsourcing service fees	17,989	1,928
Amount due to related parties	11,988	15,360
Amount due to a financial institution	34,190	83,305
Other accrued operating expenses	38,020	27,152
Other payables	15,121	9,673
	817,883	1,395,981

LEASES

12 Months Ended

Dec. 31, 2020

LEASES

LEASES

12 LEASES

The Company enters into lease arrangements primarily for data center spaces, office spaces and equipment.

Data center buildings and land leases

During the year ended December 31, 2020, the Company entered into lease agreements with the landlords to lease the building and land, including those acquired through acquisition of subsidiaries, for certain data centers. The Company assessed the lease classification of the building and land components separately at the commencement date. During the year ended December 31, 2020, the Company recorded additional finance lease liabilities of RMB1,634,419 and operating lease liabilities of RMB768,613 through the above new lease agreements or acquisition of subsidiaries.

Equipment lease

During the year ended December 31, 2020, the Company entered into lease agreements with a third-party lessor for the leases of certain equipment in Hebei, China, in which the underlying assets needs to be constructed. The lessor purchased these underlying assets prior to the lease commencement for the construction based on the Company’s specifications and supervision. The Company had the right to obtain the partially constructed underlying assets at any point during the construction period by making a payment to the lessor, and the Company concluded that it controls the underlying assets before the lease commencement in accordance with ASC 842-40-55-5. Accordingly, the Company recorded an asset for the estimated construction costs incurred for the equipment and a liability for those costs funded by the lessor during the construction period. Upon completion of the construction, the Company will assess if the arrangement qualifies for sales recognition under the sale and lease back accounting guidance. The obligations under above lease arrangements are recognized as other financing obligations.

In 2019, the Company also entered into two lease agreements with a third-party lessor for the leases of certain equipment in Hebei, China. As the ownership of the underlying assets will be transferred to the Company by the end of the lease term, such leases are recognized as finance leases. The relevant leases commenced when the Company received the equipment. The amount paid by the lessor to its vendor for equipment which was not received by the Company at December 31, 2019, was recognized as other financing obligations. Such other financing obligations were reclassified to finance lease obligation upon commencement of the lease in the year ended December 31, 2020.

The components of lease cost are as follows:


	Years ended December 31,
	2019	2020

Finance lease cost:
- Amortization of right-of-use assets	222,101	423,075
- Interest on lease liabilities	299,511	465,692
Operating lease cost	100,469	195,869
Short-term lease cost	5,004	19,987
Variable lease cost (Note)	—	(55,599)

Total lease cost	627,085	1,049,024

Note: During the year ended December 31, 2020, the Company was granted lease concessions of RMB55,188 by certain landlords due to the effects of the COVID-19 pandemic. The lease concessions were primarily in the form of rent reduction. Such concessions were recognized as variable lease cost (credit) in the period when the concession was granted. In addition, the Company recognized variable lease cost (credit) of RMB411 in the year ended December 31, 2020 for certain finance leases with floating interest rate.

Supplemental cash flow information related to leases is as follows:


	Years ended December 31,
	2019	2020

Cash paid for amounts included in measurement of lease liabilities (Note):
- Operating cash flows from finance leases	(248,417)	(389,679)
- Operating cash flows from operating leases	(116,295)	(141,480)
- Financing cash flows from finance leases	(302,679)	(198,234)

Non-cash information on lease liabilities arising from obtaining ROU assets
- Finance leases	708,757	1,099,698
- Operating leases	333,775	553,154

Note: The above table does not include cash paid for purchase of land use rights and initial direct costs of leases of RMB800,431 and RMB744,761 in the years ended December 31, 2019 and 2020 , respectively, which are included in “Payments for purchase of property and equipment and land use rights” in the consolidated statements of cash flows.

Weighted average remaining lease term and weighted average discount rate for leases, excluding prepaid land use rights, are as follows:


	As of December 31,
	2019	2020

Weighted average remaining lease term:
- Finance leases	15.2	13.7
- Operating leases	15.6	15.6

Weighted average discount rate:
- Finance leases	6.91%	7.00%
- Operating leases	6.35%	6.23%

Maturities of lease and other financing obligations were as follows:


	As of December 31, 2019					As of December 31, 2020
			Total of					Total of
			finance lease					finance lease
		Other	and other	Operating			Other	and other	Operating
	Finance lease	financing	financing	lease		Finance lease	financing	financing	lease
	obligations	obligations	obligations	obligations	Total	obligations	obligations	obligations	obligations	Total
Within 1 year	502,261	32,232	534,493	97,993	632,486	577,933	225,350	803,283	180,447	983,730
After 1 year but within 2 years	399,200	37,462	436,662	72,046	508,708	600,348	354,625	954,973	190,243	1,145,216
After 2 years but within 3 years	399,843	72,845	472,688	64,151	536,839	620,461	356,204	976,665	149,300	1,125,965
After 3 years but within 4 years	414,126	69,248	483,374	64,086	547,460	650,855	377,930	1,028,785	151,545	1,180,330
After 4 years but within 5 years	429,902	65,688	495,590	64,547	560,137	681,090	361,073	1,042,163	151,063	1,193,226
After 5 years	5,905,408	163,480	6,068,888	880,855	6,949,743	7,792,794	723,755	8,516,549	1,839,384	10,355,933
Total	8,050,740	440,955	8,491,695	1,243,678	9,735,373	10,923,481	2,398,937	13,322,418	2,661,982	15,984,400

Less: total future interest	(3,387,232)	(121,742)	(3,508,974)	(478,541)	(3,987,515)	(4,343,379)	(578,822)	(4,922,201)	(1,032,829)	(5,955,030)
Less: estimated construction costs	—	(9,127)	(9,127)	—	(9,127)	—	(47,924)	(47,924)	-	(47,924)

Present value of lease and other financing obligations	4,663,508	310,086	4,973,594	765,137	5,738,731	6,580,102	1,772,191	8,352,293	1,629,153	9,981,446
Including:
- Current portion			222,473	55,139	277,612			254,412	86,258	340,670
- Non-current portion			4,751,121	709,998	5,461,119			8,097,881	1,542,895	9,640,776

As of December 31, 2020, the Company has additional leases, primarily for data center buildings, that have not yet commenced with total future lease payments of RMB279,376. These leases are expected to commence in fiscal year 2021 with lease terms of 1 year to 20 years.

Lease and other financing obligations were secured by the following assets:


	As of December 31,
	2019	2020

Accounts receivable	—	128,353
Property and equipment, net	—	578,777
	—	707,130

OTHER LONG-TERM LIABILITIES

12 Months Ended

Dec. 31, 2020

OTHER LONG-TERM LIABILITIES

OTHER LONG-TERM LIABILITIES

13 OTHER LONG-TERM LIABILITIES

Other long-term liabilities consisted of the following:


	As of December 31,
	2019	2020

Consideration payable for acquisitions	23,062	97,457
Payables for purchase of property and equipment	231,459	139,162
Deferred revenue - non-current (Note 4)	15,419	14,871
Deferred government grants	6,507	6,196
Interest rate swap contracts (Note 16)	10,408	—
Asset retirement obligations	52,441	76,909
Others	6,241	14,662
Total	345,537	349,257

REDEEMABLE PREFERRED SHARES

12 Months Ended

Dec. 31, 2020

REDEEMABLE PREFERRED SHARES

REDEEMABLE PREFERRED SHARES

14 REDEEMABLE PREFERRED SHARES

On March 27, 2019 (the “Issue Date”), GDS Holdings completed its issuance of 150,000 Convertible Preferred Shares (“redeemable preferred shares”) to an investor at the subscription price of US$1 thousand per share with total consideration of US$150,000.

The movement of redeemable preferred shares is set out as below:


		Redeemable
		preferred shares
Balance at January 1, 2019		—
Issuance of redeemable preferred shares		989,349
Change in redemption value of redeemable preferred shares		17,760
Accrual of redeemable preferred shares dividends		40,344
Settlement of redeemable preferred shares dividends		(25,014)
Foreign exchange impact		39,542

Balance at December 31, 2019		1,061,981
Accrual of redeemable preferred shares dividends		52,709
Settlement of redeemable preferred shares dividends		(65,489)
Foreign exchange impact		(68,291)

Balance at December 31, 2020		980,910

Key terms of the convertible preferred shares

Dividends

The holders of the preferred shares are entitled to receive, in priority to the holders of the ordinary shares, cumulative preferred share dividends which are payable quarterly in arrears on March 15, June 15, September 15 and December 15, commencing on June 15, 2019 (each such payment date being a "Regular Dividend Payment Date"). The dividends are 5.0% per annum of the respective preferred shares Stated Value (i.e. the subscription price of preferred shares plus any accrued dividends that are not paid on Regular Dividend Payment Date) (and shall be adjusted to an amount equal to the ordinary share dividend rate if higher). The dividend rate will increase to 7.0% per annum and further increase by 50 basis points each quarter thereafter if the Company has not redeemed all of the preferred shares outstanding as of the eighth anniversary of the Issue Date. The dividends are computed on a basis of a 360-day year and the actual number of days elapsed. Dividends may, at the option of the Company, be paid in cash only, be paid in cash or in additional preferred shares, or a combination thereof.

Conversion

The holders of preferred shares have the right to convert any or all of their holdings of preferred shares Stated Value into Class A Ordinary Shares based on the conversion rate then in effect.

In addition, if, at any time beginning on March 15, 2022, (i) the volume-weighted average price ("VWAP") per ADS of the GDS Holdings equals or exceeds US$53.40 (adjusted as according to anti-dilution provisions) for at least 20 trading days in any period of 30 consecutive trading days and (ii) the average daily trading volume of the ADS for such 20 qualifying trading days is at least US$10,000 in the aggregate, at the Company’s election, all of the preferred shares then outstanding shall be converted into a number of Class A Ordinary Shares based on the conversion rate then in effect.

The initial conversion rate is corresponding to a conversion price of US$35.60 per ADS, and will be subject to adjustments for any split, subdivision, combination, consolidation, recapitalization or similar event.

Liquidation preference

Upon a liquidation, after satisfaction of all liabilities and obligations to creditors of the Company and before any distribution or payment shall be made to holders of ordinary shares, each holder of preferred shares shall be entitled to receive an amount per preferred share equal to the greater of: (1) the Stated Value of preferred shares plus any dividends accumulated but unpaid thereon after the immediately preceding Regular Dividend Payment Date to but excluding the date of liquidation; (2) the payment such holders would have received had such holders, immediately prior to such liquidation converted their preferred shares into Class A Ordinary Shares.

Optional Redemption by the Company

The preferred shares may be redeemed, in whole or in part, at any time after March 15, 2027, at the option of the Company at a redemption price per share equal to the sum of the Stated Value per preferred share to be redeemed plus an amount per share equal to accrued but unpaid dividends on such preferred shares after the immediately preceding Regular Dividend Payment Date to but excluding the date of redemption.

Repurchase at the Option of the Holder Upon a Fundamental Change

Upon the occurrence of a Fundamental Change, as defined in the share subscription agreement, each holder of preferred shares shall have the right to require the Company to repurchase all or any portion of such holder’s preferred shares at a purchase price per preferred share equal to the greater of

(i)

the sum of (x) 100% multiplied by the Stated Value per preferred share plus (y) an amount equal to accrued but unpaid dividends on such preferred share after the immediately preceding Regular Dividend Payment Date to but excluding the date of repurchase, plus (z) solely in the event that such Fundamental Change occurs prior to the third anniversary of the Issue Date, the present value of all undeclared dividends from the date of redemption to, and including, the third anniversary of the Issue Date, in each case, discounted to the date of redemption on the basis of actual days elapsed (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, which is the yield to maturity at the time of computation of United States Treasury securities with a constant maturity, plus 50 basis points, and

(ii)

the amount of cash and/or other assets such holder would have received had such holder, immediately prior to the occurrence of such Fundamental Change, converted such preferred shares into Class A Ordinary Shares.

Financing for Redemption of Convertible Preferred Shares

In the event that any preferred shares remain outstanding from and after the tenth anniversary of the Issue Date, the holders of preferred shares constituting at least 90% of the preferred shares issued as of the Issue Date (as adjusted for any split, subdivision, combination, consolidation, recapitalization or similar event with respect to the preferred shares) shall have the right to require the Company to sell all or a portion of its business and/or to conduct other fundraising or refinancing activities, and use reasonable best efforts to consummate such sale or to issue equity or debt securities (or obtain other debt financing) in an amount sufficient to redeem in full in cash, and use best endeavors to as soon as reasonably practicable redeem in full in cash, all of the preferred shares then outstanding at a redemption price per share equal to the sum of the Stated Value per preferred share to be redeemed plus an amount per share equal to accrued but unpaid dividends on such preferred shares after the immediately preceding Regular Dividend Payment Date to but excluding the date of redemption.

Voting rights

The holders of the preferred shares have voting rights equivalent to the ordinary shareholders on an "if converted" basis. In addition, the Company shall not take certain actions without first obtaining the written consent or affirmative vote at a meeting called for that purpose by holders of at least 75% of the then outstanding preferred shares.

The Company has classified these preferred shares as mezzanine equity in the consolidated balance sheets since they are contingently redeemable upon a Fundamental Change or include liquidation preference provisions that are not solely within the Company’s control. The Company evaluated the embedded conversion, call and put options in the preferred shares to determine if they require bifurcation and are accounted for as derivatives, and concluded that there were no embedded derivatives to be bifurcated from the preferred share pursuant to ASC 815. The Company also determined that there was no BCF attributable to the preferred shares because the initial conversion price was higher than the fair value of the Company’s ordinary shares.

The Company incurred issuance cost of US$2,646 for the issuance of such preferred shares, which was treated as an adjustment to the initial value of the redeemable preferred shares. The Company has elected to measure the redeemable preferred shares by recognizing changes in the redemption value immediately as they occur and adjust the carrying amount to equal the redemption value at the end of each reporting period. As a result, such issuance cost is immediately recognized as a change in redemption value and charged against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital.

REDEEMABLE NON-CONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2020

REDEEMABLE PREFERRED SHARES

REDEEMABLE NON-CONTROLLING INTERESTS

15 REDEEMABLE NON-CONROLLING INTERESTS

In July 2020, the Company formed a joint venture (“JV”) to undertake a new data center project in Beijing (“Beijing 13” and “Beijing 14”, previously referred to as “Beijing 13” which was then split to two data center projects according to the design) with a private equity fund (“CPE Fund”) controlled by CITIC Private Equity Funds Management Co., Limited. The Company owns a 58% controlling interest in the JV, while CPE Fund owns 42%. On completion of the project and satisfaction of certain other conditions, the Company is required to acquire CPE Fund’s 42% equity interest in the JV, the consideration of which will be calculated based on the power capacity, sales contract with customers and the assets and liabilities of the JV at that time.

The non-controlling interest of JV is redeemable for cash when specified conditions are met, which are not events that are certain to occur. However, the occurrence of these conditions and therefore the Company’s redemption obligations are not solely within the control of the Company. Pursuant to ASC 480-10-S99 and the related guidance, the redeemable non-controlling interest in the JV is accounted for as temporary equity and measured at redemption value. The initial carrying amount of the redeemable non-controlling interests was the capital injection received from CPE Fund in July 2020. The change of the carrying amount of the redeemable non-controlling interests, other than the capital injection received and the net income or loss attributable to redeemable non-controlling interests, is recognized as accretion to redemption value of redeemable non-controlling interests in the consolidated statements of operations and charged against retained earnings or, in the absence of retained earnings, against additional paid-in capital.

The change in the carrying amount of redeemable non-controlling interests is as follows:


		Year ended
		December 31, 2020
Capital injection from CPE Fund		105,000
Net loss attributable to redeemable non-controlling interests		(2,807)
Accretion to redemption value of redeemable non-controlling interests		18,627

		120,820

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2020

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

16 DERIVATIVE FINANCIAL INSTRMENTS

As of December 31, 2019 and 2020, the Company had outstanding interest rate swap contracts with notional amounts of US$118,500 and nil, respectively.

The following table reflects the fair values of derivatives included in the consolidated balance sheets as of December 31, 2019:


	Consolidated balance
	sheets location	As of December 31, 2019

Interest rate swap contracts (not designated as hedging instruments)	Accrued expenses and other payables	351
Interest rate swap contracts (not designated as hedging instruments)	Other long-term liabilities	10,408

The following table reflects the location in the consolidated statements of operations and the amount of realized and unrealized gains/(losses) recognized for the derivative contracts not designated as hedging instruments for the years ended December 31, 2018, 2019 and 2020:


	Consolidated
	statements of	Years ended December 31,
	operations location	2018	2019	2020

Interest rate swap contracts (not designated as hedging instruments) — realized loss	Interest expenses	(75)	(1,652)	(19,814)
Interest rate swap contracts (not designated as hedging instruments) — unrealized (loss) gain	Interest expenses	156	(10,606)	10,039

		81	(12,258)	(9,775)

FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2020

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

17 FAIR VALUE MEASUREMENT

The Company did not have financial assets or liabilities measured at fair value on a recurring basis as of December 31, 2020. As of December 31, 2019, the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:


		Fair value measurement using
		Level 2 inputs

Liabilities
- Interest rate swap contracts (Note 16)		10,759

Following is a description of the valuation techniques that the Company uses to measure fair value of other financial assets and financial liabilities:

●

Short-term financial instruments (cash, restricted cash, accounts receivable and payable, short-term borrowings, and accrued expenses and other payables) — cost approximates fair value because of the short maturity period.

●

Long-term borrowings — fair value is based on the amount of future cash flows associated with each debt instrument discounted at the Company’s current borrowing rate for similar debt instruments of comparable terms. The carrying values of the long-term borrowings approximate their fair values as all the long-term debt carry various interest rates which approximate rates currently offered by the Company’s bankers for similar debt instruments of comparable maturities.

●

Convertible Bonds payable—the estimated fair value was RMB2,448,646 and RMB3,683,816 as of December 31, 2019 and 2020 , respectively. The fair value was measured based on the price in the open market.

ORDINARY SHARES

12 Months Ended

Dec. 31, 2020

ORDINARY SHARES

ORDINARY SHARES

18 ORDINARY SHARES

On January 26, 2018, the Company completed a public offering in which the Company offered and sold 8,000,000 ADSs (or 64,000,000 Class A ordinary shares), and SBCVC Holdings Limited (“SBCVC”), one of the Company’s principal shareholders, sold 3,000,000 ADSs (or 24,000,000 Class A ordinary shares), at a price of US$26.00 per ADS. On January 29, 2018, the underwriters exercised their option to purchase from the Company and SBCVC additional 225,000 ADSs (or 1,800,000 Class A ordinary shares) and 1,425,000 ADSs (or 11,400,000 Class A ordinary shares), respectively. The Company raised a total of US$202,696 (RMB1,283,308) in proceeds from this public offering, net of underwriting discounts and commissions and other issuance costs.

On March 19, 2019, the Company completed a public offering in which the Company offered and sold 13,731,343 ADSs (or 109,850,744 Class A ordinary shares), including 1,791,044 ADSs (or 14,328,352 Class A ordinary shares) purchased by the underwriters by exercising their option. The Company raised a total of US$444,699 (RMB2,982,242) in proceeds from this public offering, net of underwriting discounts and commissions and other issuance costs.

On December 10, 2019, the Company completed a public offering in which the Company offered and sold 6,318,680 ADSs (or 50,549,440 Class A ordinary shares), including 824,175 ADSs (or 6,593,400 Class A ordinary shares) purchased by the underwriters by exercising their option. The Company raised a total of US$277,256 (RMB1,951,884) in proceeds from this public offering, net of underwriting discounts and commissions and other issuance costs.

In June 2020, two investors, Hillhouse Capital (“Hillhouse”) and STT GDC, purchased, through a private placement, of US$400,000 and US$105,000 respectively of 62,153,848 newly issued Class A ordinary shares of the Company at a price equivalent to US$65 per ADS(or US$8.125 per share). The Company received net proceeds of US$500,784 (RMB3,533,285) from this private placement, after deducting underwriting commissions and other issuance costs.

On November 2, 2020, the Company successfully completed its secondary listing in Hong Kong and public offering of 160,000,000 Class A ordinary shares (or 20,000,000 ADSs) at a price of HK$80.88 per share. On November 6, 2020, the underwriters had fully exercised their over-allotment option in respect of 24,000,000 shares (or 3,000,000 ADSs). The Company received net proceeds from this offering of RMB12,441,232, after deducting underwriting discounts and commissions and the offering expenses payable by the Company.

As of December 31, 2020, the Company’s outstanding share capital consisted of 1,427,590,059 Class A ordinary shares and 67,590,336 Class B ordinary shares.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

19 SHARE-BASED COMPENSATION

Equity Incentive Plans

The Company adopted the 2014 Equity Incentive Plan (“the 2014 Plan”) in July 2014 for the granting of share options to key employees, directors and external consultants in exchange for their services. The total number of shares, which may be issued under the 2014 Plan, is 29,240,000 shares.

The Company adopted the 2016 Equity Incentive Plan (“the 2016 Plan”) in August 2016 for the granting of share options, stock appreciation rights and other stock-based award (collectively referred to as the “Awards”) to key employees and directors. The maximum aggregate number of ordinary shares, which may be subject to Awards under the Plan, is 56,707,560 ordinary shares, provided, however, that the maximum number of unallocated ordinary shares which may be issuable pursuant to Awards are subject to certain automatic approval mechanism up to 3% of total issued and outstanding ordinary shares of the Company, if and whenever the unallocated ordinary shares which may be subject to equity awards under the 2016 Plan accounts for less than 1.5% of the Company’s total issued and outstanding ordinary shares.

In June 2018, the Company granted 500,000 share options under the 2014 Plan to an external consultant at an exercise price of US$0.7792 (RMB5.0) per option, which were immediately vested. The options have a contractual term of five years. The Company recognized the fair value of such options granted and vested amounted to US$2,429 (RMB16,073) immediately to profit and loss. The fair value of such options was determined to be approximately the difference between the grant date share price and the exercise price.

A summary of the option activity is as follows:


			Weighted
			average
		Weighted	grant-date
	Number	average	fair value
	of options	exercise price	per option
		(RMB)	(RMB)
Options outstanding at January 1, 2018	28,087,236	5.1	3.2
Granted	500,000	5.0	31.2
Exercised	(3,614,464)	5.2	4.5
Forfeited	(193,340)	5.0	6.2

Options outstanding at December 31, 2018	24,779,432	5.3	2.2
Granted	—
Exercised	(10,150,336)	5.6	3.5
Forfeited	—

Options outstanding at December 31, 2019	14,629,096	5.4	1.7
Granted	—
Exercised	(14,222,096)	5.5	1.6
Forfeited	—

Options outstanding at December 31, 2020	407,000	5.1	1.6

Options vested and expected to be vested at December 31, 2020	407,000	5.1	1.6

Total intrinsic value of options exercised was RMB77,917 , RMB266,863 and RMB633,606, respectively, for the years ended December 31, 2018, 2019 and 2020.

The following table summarizes information with respect to stock options outstanding and stock options exercisable as of December 31, 2020:


		Weighted
		average	Weighted
	Number	remaining	average
	of shares	contractual life	exercise price
		(years)	(RMB)
Options outstanding and exercisable	407,000	0.3	5.1

As of December 31, 2019 and 2020, there were no unvested employee or non-employee stock options. Aggregate intrinsic value of options outstanding and exercisable as of December 31, 2020 was RMB29,015.

Settlement of liability-classified restricted shares award

In March, May, August and November 2018, the Company issued a total of 260,560 fully vested restricted shares to its directors to settle a portion of their remuneration for services provided by the directors, which had been recorded in general and administrative expenses. The number of restricted shares issued was determined by the fair value of the restricted shares on the date of settlement and the share-settled portion of the liability of RMB6,357.

In March, May, August and November 2019, the Company issued a total of 237,312 fully vested restricted shares to its directors to settle a portion of their remuneration for services provided by the directors, which had been recorded in general and administrative expenses. The number of restricted shares issued was determined by the fair value of the restricted shares on the date of settlement and the share-settled portion of the liability of RMB7,984.

In March, June, July and October 2020, the Company issued a total of 190,536 fully vested restricted shares to its directors to settle a portion of their remuneration for services provided by the directors, which had been recorded in general and administrative expenses. The number of restricted shares issued was determined by the fair value of the restricted shares on the date of settlement and the share-settled portion of the liability of RMB10,089.

Pursuant to ASC 480-10-25-14, such award that is share-settleable for a fixed monetary amount is a liability-classified award and therefore is re-measured each reporting period until settlement.

Upon issuance of the shares to settle the obligation, equity is increased by the amount of the liability settled in shares and no additional share-based compensation expense was recorded.

Restricted shares to directors, officers and employees

In July 2018 , August 2019 and August 2020, the Company granted non-vested restricted shares of 12,941,952, 14,314,160 and 11,520,312, respectively, to employees, officers and directors. The restricted share awards contained service and market conditions, or service and performance conditions, which are tied to the financial performance of the Company. For restricted shares granted, the value of the restricted shares was determined by the fair value of the restricted shares on the grant date, on which all criteria for establishing the grant dates were satisfied. The value of restricted shares subject to service conditions and market conditions attached is recognized as the compensation expense using the graded-vesting method. The value of restricted shares with performance conditions attached is recognized as compensation expense using the graded-vesting method only when the achievement of performance conditions becomes probable. For restricted shares with market conditions, the probability to achieve market conditions is reflected in the grant date fair value.

A summary of the restricted share activity is as follows:


		Weighted average grant-
	Number of	date fair value per share
	Shares	(RMB)

Unvested at January 1, 2018	24,525,620	5.3
Granted	13,202,512	14.5
Vested	(7,326,620)	6.0
Forfeited	(891,008)	5.9

Unvested at December 31, 2018	29,510,504	9.3
Granted	14,551,472	34.2
Vested	(9,122,432)	9.3
Forfeited	(1,582,248)	10.7

Unvested at December 31, 2019	33,357,296	22.4
Granted	11,710,848	66.7
Vested	(12,684,640)	14.1
Forfeited	(1,364,736)	25.1

Unvested at December 31, 2020	31,018,768	42.4

The Company recognized share-based compensation expenses of RMB89,804, RMB189,447 and RMB333,686 for the years ended December 31, 2018, 2019 and 2020, respectively, for the restricted share awards. As of December 31, 2020, total unrecognized compensation expense relating to the unvested shares was RMB574,564. The expense is expected to be recognized over a weighted average period of 1.73 years using the graded-vesting attribution method. The Company did not capitalize any of the share-based compensation expenses as part of the cost of any asset for the years ended December 31, 2018, 2019 and 2020.

Total intrinsic value of restricted shares vested was RMB160,264, RMB311,923 and RMB827,396, respectively, for the years ended December 31, 2018, 2019 and 2020. Aggregate intrinsic value of unvested restricted shares as of December 31, 2020 was RMB2,369,023.

The fair value of the restricted shares granted is estimated on the date of grant using the Monte Carlo simulation model with the following assumptions used.


Grant date:	August 2018		August 2019		August 2020
Risk-free rate of return	2.047% - 2.418	%	1.67% - 1.88	%	0.14% - 0.19	%
Volatility	71.85	%	63.22	%	59.23	%
Expected dividend yield	0.00	%	0.00	%	0.00	%
Share price at grant date	US$3.125		US$5.02375		US$10.1475
	(RMB21.3)		(RMB34.6)		(RMB70.5)
Expected term	1 – 3 years		1 – 3 years		1 – 3 years

(1)

Volatility

Expected volatility is assumed based on the historical volatility of the Company’s comparable companies or the Company in the period equal to the expected term of each grant.

(2)

Risk-free interest rate

Risk-free rate equal to the United States Government Treasury Yield Rates for a term equal to the remaining expected term.

(3)

Dividend yield

The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the restricted shares.

A summary of share-based compensation expenses for the years ended December 31, 2018, 2019 and 2020 is as follows:


	Years ended December 31,
	2018	2019	2020

Costs of revenue	18,008	46,007	89,943
Selling and marketing expenses	25,213	39,436	54,204
General and administrative expenses	61,707	101,949	184,943
Research and development expenses	949	2,364	4,596
Total share-based compensation expenses	105,877	189,756	333,686

REVENUE

12 Months Ended

Dec. 31, 2020

REVENUE

REVENUE

20 REVENUE

Net revenue consisted of the following:


	Years ended December 31,
	2018	2019	2020

Colocation services	2,104,259	3,261,745	4,710,923
Managed service and others	655,231	832,826	1,005,945
Service revenue	2,759,490	4,094,571	5,716,868
Equipment sales	32,587	27,834	22,104
Total	2,792,077	4,122,405	5,738,972

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 12
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

INCOME TAX

12 Months Ended

Dec. 31, 2020

INCOME TAX

INCOME TAX

21 INCOME TAX

Pursuant to the rules and regulations of the Cayman Islands, GDS Holdings is not subject to any income tax in the Cayman Islands.

Two PRC entities are entitled to PRC Corporate Income Tax (“CIT”) rate of 15% in those years that being recognized as "High and New Technology Enterprise" as long as the relevant requirements are satisfied. All the other PRC subsidiaries and consolidated VIEs of the Company are subject to CIT rate of 25%.

The Company’s Hong Kong SAR subsidiaries are subject to the Hong Kong SAR Profits Tax rate of 16.5%. A two-tiered Profits Tax rates regime was introduced since year 2018 where the first HK$2 million of assessable profits earned will be taxed at half the current tax rate (8.25)% whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one entity in the group to benefit from the progressive rates.

The Company’s Singapore subsidiaries are subject to the Singapore CIT rate of 17%.

The operating results before income tax and the provision for income taxes by tax jurisdictions for the years ended December 31, 2018, 2019 and 2020 are as follows:


	Years ended December 31,
	2018	2019	2020
Loss (income) before income taxes:
PRC	237,232	68,080	(19,765)
Other jurisdictions	202,427	358,353	568,201
Total loss before income taxes	439,659	426,433	548,436

Current tax expenses:
PRC	27,206	65,819	210,503
Other jurisdictions	—	3	14
Total current tax expenses	27,206	65,822	210,517

Deferred tax benefits:
PRC	(36,597)	(50,172)	(89,739)
Other jurisdictions	—	—	—
Total deferred tax benefits	(36,597)	(50,172)	(89,739)

Total income taxes (benefits) expenses	(9,391)	15,650	120,778

The actual income tax expense reported in the consolidated statements of operations differs from the amount computed by applying the PRC statutory income tax rate to loss before income taxes due to the following:


	Years ended December 31,
	2018		2019		2020

PRC enterprise income tax rate	25.0	%	25.0	%	25.0	%
Non-PRC resident enterprises not subject to income tax	(9.2)	%	(21.4)	%	(27.6)	%
Tax differential for entities in non-PRC jurisdiction	(1.2)	%	(1.4)	%	(1.3)	%
Preferential tax rate	0.0	%	0.0	%	(0.3)	%
Tax effect of current year permanent differences	(1.3)	%	1.5	%	1.0	%
Expiration of unused net operating losses	(10.1)	%	(1.4)	%	(1.3)	%
Non-taxable income	0.0	%	0.0	%	2.5	%
Change in valuation allowance	(1.0)	%	(8.7)	%	(21.3)	%
Return to provision adjustment	(0.1)	%	2.7	%	1.3	%
	2.1	%	(3.7)	%	(22.0)	%

The components of deferred tax assets and liabilities are as follows:


	As of December 31,
	2019	2020
Deferred tax assets:
Allowance for accounts receivable	12	1,959
Government subsidy	3,127	1,549
Accrued expenses	27,601	24,597
Asset retirement obligation	13,110	19,227
Net operating losses carry forwards	267,159	386,999
Total gross deferred tax assets	311,009	434,331
Valuation allowance on deferred tax assets	(205,976)	(328,821)
Deferred tax assets, net of valuation allowance	105,033	105,510

Deferred tax liabilities:
Property and equipment	(171,656)	(154,480)
Intangible assets	(97,102)	(195,093)
Prepaid land use rights	(1,612)	(1,572)
Leases	(9,568)	(70,284)
Accounts receivable	(4,836)	—
Total deferred tax liabilities	(284,774)	(421,429)

Net deferred tax liabilities	(179,741)	(315,919)

Analysis as:
Deferred tax assets	72,931	146,088
Deferred tax liabilities	(252,672)	(462,007)
Net deferred tax liabilities	(179,741)	(315,919)

The following table presents the movement of the valuation allowance for the deferred tax assets:


	Years ended December 31,
	2018	2019	2020

Balance at the beginning of the year	152,241	155,852	205,976
Increase during the year	3,611	50,124	122,845
Balance at the end of the year	155,852	205,976	328,821

As of December 31, 2020, the Company’s net deferred tax assets were RMB146,088, which is net of a valuation allowance of RMB328,821. The deferred tax assets for net operating losses carry forwards and related valuation allowance were RMB386,999 and RMB251,868, respectively as of December 31, 2020. This valuation allowance was related to the deferred tax assets of certain subsidiaries of the Company. These entities were in a cumulative loss position with net operating losses carry forwards which are subject to expiration. Management evaluated the realizability of the deferred tax assets associated with the Company’s net operating losses carry forwards to determine whether there was more than a 50% likelihood that these deferred tax assets would be realized, based on the Company’s expectations of future taxable income and timing of net operating losses carry forwards expirations. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilized. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

The net operating losses carry forwards of the Company’s PRC subsidiaries amounted to RMB1,421,451 as of December 31, 2020, of which RMB42,278, RMB97,573, RMB299,356, RMB375,780 and RMB606,464 will expire if unused by December 31, 2021, 2022, 2023 , 2024 and 2025, respectively.

Uncertainties exist with respect to how the current income tax law in the PRC applies to the Company’s overall operations, and more specifically, with regard to tax residency status. The 2008 Enterprise Income Tax Law (the “EIT Law”) includes a provision specifying that legal entities organized outside the PRC are considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated as residents for EIT Law purposes. If the PRC tax authorities subsequently determine that GDS Holdings and its subsidiaries registered outside the PRC are deemed resident enterprises, GDS Holdings and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%.

If the Company were to be non-resident for PRC tax purposes, dividends paid to it from profits earned by the PRC subsidiaries after January 1, 2008 would be subject to a withholding tax. The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on January 1, 2008. Undistributed earnings generated prior to January 1, 2008 are exempt from such withholding tax. The Company has not recognized any deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31, 2019 and 2020, as the Company plans to permanently reinvest these earnings in the PRC. Each of the PRC subsidiaries does not have a plan to pay dividends in the foreseeable future and intends to retain any future earnings for use in the operation and expansion of its business in the PRC.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

DISTRIBUTION OF PROFIT

12 Months Ended

Dec. 31, 2020

DISTRIBUTION OF PROFIT

DISTRIBUTION OF PROFIT

22 DISTRIBUTION OF PROFIT

Pursuant to the laws and regulations of the PRC, the PRC entities are required to allocate at least 10% of their after tax profits, after making good of accumulated losses as reported in their PRC statutory financial statements, to the general reserve fund and have the right to discontinue allocations to the general reserve fund if the balance of such reserve has reached 50% of their registered capital. The general reserves are not available for distribution to the shareholders (except in liquidation) and may not be transferred in the form of loans, advances, or cash dividend.

These PRC entities are restricted in their ability to transfer the registered capital and general reserve fund to GDS Holdings in the form of dividends, loans or advances. The restricted portion amounted to RMB7,367,536 and RMB13,109,939 as of December 31, 2019 and 2020, respectively, including non-distributable general reserve fund of RMB15,712 and RMB55,333 as of December 31, 2019 and 2020, respectively.

LOSS PER ORDINARY SHARE

12 Months Ended

Dec. 31, 2020

LOSS PER ORDINARY SHARE

LOSS PER ORDINARY SHARE

23 LOSS PER ORDINARY SHARE

The computation of basic and diluted loss per share is as follows:


	Years ended December 31,
	2018	2019	2020

Net loss	(430,268)	(442,083)	(669,214)

Net loss attributable to redeemable non-controlling interests	—	—	2,807
Accretion to redemption value of redeemable non-controlling interests	—	—	(18,627)
Change in redemption value of redeemable preferred shares	—	(17,760)	—
Cumulative dividend on redeemable preferred shares	—	(40,344)	(52,709)
Net loss available to ordinary shareholders	(430,268)	(500,187)	(737,743)

Weighted average number of ordinary shares outstanding - basic and diluted	990,255,959	1,102,953,366	1,253,559,523

Loss per ordinary share - basic and diluted	(0.43)	(0.45)	(0.59)

During the years ended December 31, 2018, 2019 and 2020, the Company issued nil, 48,962,896 and 32,592,288 ordinary shares, respectively, to its share depository bank, which have been and will continue to be used to settle stock option and restricted share awards upon their exercise. No consideration was received by the Company for this issuance of ordinary shares. These ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes and, therefore, have been excluded from the computation of loss per ordinary share. Any ordinary shares not used in the settlement of stock option and restricted share awards will be returned to the Company.

The following securities were excluded from the computation of diluted loss per share as inclusion would have been anti-dilutive. The share options and restricted shares below represented the maximum number of shares to be issued.


	Years ended December 31,
	2018	2019	2020

Share options/restricted shares	54,289,936	47,986,392	31,425,768
Convertible bonds payable	46,527,600	46,527,600	46,526,049
Total	100,817,536	94,513,992	77,951,817

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

24 SEGMENT INFORMATION

The Company has one operating segment, which is the design, build-out and operation of data centers. The Company’s chief operating decision maker is the chief executive officer of the Company who reviews the Company’s consolidated results of operations in assessing performance of and making decisions about resource allocations to this segment. Accordingly, no reportable segment information is presented.

During the years ended December 31, 2018, 2019 and 2020, substantially all of the Company’s operations are in the PRC. As of December 31, 2019 and 2020, the long-lived assets amounted to RMB1,605,892 and RMB1,627,832, respectively, were located in Hong Kong SAR, and substantially all of the remaining long-lived assets were in the PRC.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2020

MAJOR CUSTOMERS

MAJOR CUSTOMERS

25 MAJOR CUSTOMERS

During the year ended December 31, 2018, the Company had three contracting customers, which generated over 10% of the Company’s total revenues or RMB563,698, RMB490,523 and RMB376,881, respectively. During the year ended December 31, 2019, the Company had three contracting customers, which generated over 10% of the Company’s total revenues or RMB1,010,794, RMB712,780 and RMB535,990, respectively. During the year ended December 31, 2020, the Company had three contracting customers, which generated over 10% of the Company’s total revenues or RMB1,347,165, RMB847,620 and RMB674,621, respectively.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

26 COMMITMENTS AND CONTINGENCIES

(a) Capital commitments

Capital commitments outstanding at December 31, 2019 and 2020 not provided for in the financial statements were as follows:



	As of December 31,
	2019	2020

Contracted for	2,722,084	3,949,623

Commitment for purchase of land use rights was RMB4,500 and RMB20,650 as of December 31, 2019 and 2020 , respectively.

(b) Lease commitments

The Company’s lease commitments are disclosed in Note 12.

In August 2018, the Company and its chief executive officer and chief financial officer were named as defendants in a consolidated class action lawsuit filed in the United States District Court. The complaints in the action allege that the Company’s registration statements contained misstatements or omissions regarding its business, operation, and compliance in violation of the U.S. securities laws. As of December 31, 2019, the Company had unpaid legal cost and other related costs of approximately RMB5,748 pertaining to this. On April 7, 2020, the US District Court for the Southern District of New York granted the motion of the defendants (including GDS Holdings, its chief executive officer and chief financial officer) to dismiss the class action lawsuit. On May 6, 2020, plaintiffs filed a notice of appeal of that decision. On June 29, 2020, plaintiffs voluntarily withdrew their appeal, resulting in the dismissal of the case against all Defendants with prejudice.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

27 RELATED PARTY TRANSACTIONS

In 2018, 2019 and 2020, the related parties of the Company are as follows:


Name of party		Relationship

STT GDC		Principal ordinary shareholder of the Company
STT Singapore DC Pte. Ltd.		Subsidiary of STT GDC
STT DEFU 2 Pte. Ltd.		Subsidiary of STT GDC

In addition to the related party information disclosed elsewhere in the consolidated financial statements, the Company entered into the following material related party transactions.

(a) Major transactions with related parties


		Years ended December 31,
		2018	2019	2020

Commission income	(Note)
STT Singapore DC Pte. Ltd.		—	624	553
STT DEFU 2 Pte. Ltd.		—	332	485
		—	956	1,038

(b) Major balances with related parties


		As of December 31,
		2019	2020

Amount due to related parties:	(Note)
STT Singapore DC Pte. Ltd.		5,350	7,938
STT DEFU 2 Pte. Ltd.		6,638	7,422
		11,988	15,360

Note: During the year ended December 31, 2019, the Company successfully referred a customer to STT Singapore DC Pte. Ltd. and STT DEFU 2 Pte. Ltd. and recognized RMB624 and RMB332, respectively, as commission income. Income earned is based on amount billed on behalf of these two related parties to the ultimate customer amounting to RMB55,392 and RMB43,069, respectively. As of December 31, 2019, amount due to related parties represents the service fee received on behalf of the related parties for one of their customers located in China, which is recorded in accrued expenses and other payables.

During the year ended December 31, 2020, the Company recognized RMB553 and RMB485, respectively, as commission income from STT Singapore DC Pte. Ltd. and STT DEFU 2 Pte. Ltd. Income earned is based on amount billed on behalf of these two related parties to the ultimate customer amounting to RMB40,503 and RMB40,256, respectively. As of December 31, 2020, amount due to related parties represents the service fee received on behalf of the related parties for one of their customers, which is recorded in accrued expenses and other payables.

These amounts due to related parties are trade in nature and are settled on a recurring basis.

PARENT ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2020

PARENT ONLY FINANCIAL INFORMATION

PARENT ONLY FINANCIAL INFORMATION

28 PARENT ONLY FINANCIAL INFORMATION

The following condensed parent company financial information of GDS Holdings has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. As of December 31, 2020, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of GDS Holdings, except for those, which have been separately disclosed in the consolidated financial statements.

Condensed Balance Sheets


	As of December 31,
	2019	2020
Assets

Current assets
Cash	2,560,388	12,312,249
Prepaid expenses	7,048	39,187
Other current assets	21,537	23,136
Total current assets	2,588,973	12,374,572
Restricted cash	27,225	—
Investment and loans to subsidiaries	11,539,590	16,146,058
Other non-current assets	4,954	3,616
Total assets	14,160,742	28,524,246

Liabilities, Mezzanine Equity and Shareholders’ Equity

Current liabilities
Accounts payable	7,168	12,451
Accrued expenses and other payables	49,546	29,790
Due to subsidiaries	928	868
Total current liabilities	57,642	43,109

Long-term borrowings	681,235	—
Convertible bonds payable	2,049,654	1,928,466
Other long-term liabilities	16,649	5,769
Total liabilities	2,805,180	1,977,344

Mezzanine equity
Redeemable preferred shares (US$0.00005 par value; 150,000 shares authorized, issued and outstanding as of December 31, 2019 and December 31, 2020, respectively; Redemption value of RMB1,061,981 and RMB980,910 as of December 31, 2019 and December 31, 2020, respectively; Liquidation value of RMB1,537,636 and RMB2,576,578 as of December 31, 2019 and December 31, 2020, respectively)	1,061,981	980,910
Total mezzanine equity	1,061,981	980,910

Shareholders' equity
Ordinary shares (US$0.00005 par value; 2,002,000,000 authorized; 1,148,842,379 and 1,427,590,059 Class A ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively; 67,590,336 Class B ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively)	412	507
Additional paid-in capital	12,403,043	28,728,717
Accumulated other comprehensive loss	(52,684)	(439,635)
Accumulated deficit	(2,057,190)	(2,723,597)
Total shareholders’ equity	10,293,581	25,565,992
Commitments and contingencies

Total liabilities, mezzanine equity and shareholders’ equity	14,160,742	28,524,246

Condensed Statements of Operations


	Years ended December 31,
	2018	2019	2020

Net revenue	—	—	—
Cost of revenue	(21,132)	(50,201)	(94,312)
Gross loss	(21,132)	(50,201)	(94,312)

Operating expenses
Selling and marketing expenses	(26,595)	(40,721)	(58,649)
General and administrative expenses	(96,581)	(153,854)	(224,934)
Research and development expenses	(949)	(2,364)	(4,596)
Loss from operations	(145,257)	(247,140)	(382,491)

Other income (expenses):
Interest income	14,907	48,020	18,641
Interest expenses	(48,809)	(128,539)	(155,605)
Equity in loss of subsidiaries	(251,085)	(114,418)	(144,153)
Others, net	(24)	(6)	(2,799)
Loss before income taxes	(430,268)	(442,083)	(666,407)

Income tax expenses	—	—	—
Net loss	(430,268)	(442,083)	(666,407)

Condensed Statements of Comprehensive Loss


	Years ended December 31,
	2018	2019	2020

Net loss	(430,268)	(442,083)	(666,407)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of nil tax	61,434	86,570	(386,951)
Comprehensive loss	(368,834)	(355,513)	(1,053,358)

Condensed Statements of Cash Flows


	Years ended December 31,
	2018	2019	2020

Operating activities:
Net cash used in operating activities	(33,729)	(48,514)	(45,269)

Investing activities:
Increase of due from subsidiaries	(3,846,353)	(4,473,682)	(4,940,005)
Net cash used in investing activities	(3,846,353)	(4,473,682)	(4,940,005)

Financing activities:
Proceeds from long-term borrowings	413,433	268,100	—
Payment of issuance cost of borrowings	(25,751)	—	(10,619)
Payment of commitment cost of borrowings	—	—	(45,968)
Repayment of long-term borrowings	—	—	(657,820)
Proceeds from exercise of stock options	16,866	55,469	78,748
Net proceeds from issuance of convertible bonds	1,867,304	—	—
Net proceeds from issuance of ordinary shares	1,283,308	4,934,126	15,974,517
Net proceeds from issuance of redeemable preferred shares	—	989,349	—
Payment of redeemable preferred shares dividends	—	(25,014)	(65,489)
Net cash provided by financing activities	3,555,160	6,222,030	15,273,369
Effect of exchange rate changes on cash and restricted cash	143,216	70,291	(563,459)

Net (decrease) increase in cash and restricted cash	(181,706)	1,770,125	9,724,636
Cash and restricted cash at beginning of year	999,194	817,488	2,587,613
Cash and restricted cash at end of year	817,488	2,587,613	12,312,249

Supplemental disclosures of cash flow information
Interest paid	24,308	88,818	92,509

Supplemental disclosures of non-cash investing and financing activities
Settlement of liability-classified restricted share award	6,357	7,984	10,089
Conversion of convertible bonds	—	—	65

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

29 SUBSEQUENT EVENTS

Acquisition of Beijing 15

In February 2021, the Company entered into share purchase agreements to acquire all equity interests in a target group, which owns a data center (Beijing 15, formerly known as Beijing 14) in Beijing, China, from third parties. The cash consideration will be determined from the estimated total enterprise value of RMB4,330,000 (including contingent portion related to future performance), deducting assumed liabilities (net of certain receivables) on the target group’s financial position and any capital expenditure to be incurred on the closing date. The completion of the acquisition is subject to the fulfilment of certain customary closing conditions.

Acquisition of Shenzhen 8

In March 2021, the Company entered into a share purchase agreement to acquire all equity interests in a target company, which owns a data center project (Shenzhen 8) in Shenzhen, Guangdong Province, China, from a third party for an estimated purchase price of RMB89,773, which includes contingent considerations of RMB35,909 and is subject to adjustment depending on the target company’s financial position on the closing date. The completion of the acquisition is subject to the fulfilment of certain customary closing conditions.

Acquisition of Tianjin 1

In February 2021, the Company entered into a share purchase agreement to acquire 65% equity interest in a target group which owns a data center project (Tianjin 1) in Tianjin, China from 3^rd parties for an estimated aggregate purchase price of RMB133,060, subject to adjustment depending on the target group’s financial position on the closing date. The completion of the acquisition is subject to the fulfilment of certain customary closing conditions.

New project loan facilities

From January 1 to April 9, 2021, four of the subsidiaries of the Company entered into various facility agreements with various third-party banks for a total amount of RMB944,000 with various maturity dates.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

(a) Principles of consolidation

●

Levy fines on the Company or confiscate income of the Company;

●

Revoke or suspend the VIEs’ business or operating licenses;

●

Discontinue or place restrictions or onerous conditions on VIE’s operations;

●

Require the Company to discontinue their operations in the PRC;

●

Require the Company to undergo a costly and disruptive restructuring;

●

Take other regulatory or enforcement actions that could be harmful to the Company’s business.


	As of December 31,
	2019	2020
Assets
Current assets
Cash	730,960	1,310,269
Accounts receivable, net of allowance for doubtful accounts	858,764	1,388,128
VAT recoverable	46,817	85,760
Prepaid expenses	39,124	76,505
Other current assets	32,929	13,259
Total current assets	1,708,594	2,873,921

Property and equipment, net	2,911,727	2,760,618
Intangible assets, net	159,860	194,230
Operating lease right-of-use assets	91,329	430,525
Deferred tax assets	34,157	43,126
Restricted cash	29,508	49,905
VAT recoverable	136,011	113,684
Other non-current assets	75,873	115,315
Total assets	5,147,059	6,581,324

Liabilities
Current liabilities
Short-term borrowings and current portion of long-term borrowings	493,614	628,721
Accounts payable	181,448	194,325
Accrued expenses and other payables	160,401	152,534
Deferred revenue	68,003	90,192
Operating lease liabilities, current	31,869	50,888
Finance lease and other financing obligations, current	125,318	31,629
Total current third-party liabilities	1,060,653	1,148,289

Long-term borrowings, excluding current portion	1,335,084	1,213,020
Operating lease liabilities, non-current	66,387	361,502
Finance lease and other financing obligations, non-current	921,965	982,209
Deferred tax liabilities	76,297	91,036
Other long-term liabilities	29,950	34,281
Total third-party liabilities	3,490,336	3,830,337
Amounts due to GDS Holdings and its non-VIE subsidiaries, net	1,534,768	2,531,025
Total liabilities	5,025,104	6,361,362


	Years ended December 31,
	2018	2019	2020

Net revenue	2,712,875	4,013,561	5,453,802
Net (loss) income	(59,757)	99,857	129,254
Net cash provided by operating activities	739,848	414,424	899,132
Net cash used in investing activities	(1,063,826)	(201,995)	(278,744)
Net cash provided by (used in) financing activities	614,575	(43,547)	(20,682)

Use of estimates

(b) Use of estimates

Cash and cash equivalents

Restricted cash

(d) Restricted cash

Fair value of financial instruments

(e) Fair value of financial instruments

●

Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

●

Contract balances

(f) Contract balances

Deferred revenue (a contract liability) is recognized when the Company has an unconditional right to a payment before it transfers goods or services to customers.

Fulfilment costs

(g) Fulfilment costs

Equity method investments

(h) Equity method investments

Property and equipment

(i) Property and equipment

The estimated useful lives are presented below.


Land		Remaining lease terms
Buildings		Shorter of the lease term and 30 years
Data center equipment
– Machinery		10 - 20 years
– Other equipment		3 - 5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets
Furniture and office equipment		3 - 5 years
Vehicles		5 years

Leases

(j) Leases

The Company determines if an arrangement is or contains a lease at its inception.

Asset retirement costs

(k) Asset retirement costs

Asset retirement obligations are recorded in other long-term liabilities. The following table summarizes the activity of the asset retirement obligation liability:


Asset retirement obligations as of January 1, 2018		17,648
Additions		16,391
Accretion expense		1,840
Asset retirement obligations as of December 31, 2018		35,879
Additions		13,572
Accretion expense		2,990
Asset retirement obligations as of December 31, 2019		52,441
Additions		20,384
Accretion expense		4,084
Asset retirement obligations as of December 31, 2020		76,909

Intangible assets

(l) Intangible assets

Intangible assets acquired in the acquisitions comprised of customer relationships and licenses.

The weighted-average amortization period by major intangible asset class is as follows:


Customer relationships		5-15 years
Licenses		20 years

Licenses are amortized using a straight-line method over the estimated beneficial period. The amortization period of licenses is determined based on the terms of those licenses.

Prepaid land use rights

(m) Prepaid land use rights

Goodwill

(n) Goodwill

Goodwill is an asset representing the future economic benefits arising from other assets acquired in the acquisition that are not individually identified and separately recognized.

Impairment of long-lived assets

(o) Impairment of long-lived assets

Value-added-tax ("VAT")

(p) Value-added-tax (“VAT”)

Derivative financial instruments

(q) Derivative financial instruments

For further information on derivative financial instruments, see Note 16 below.

Commitment and contingencies

(r) Commitment and contingencies

Revenue recognition

(s) Revenue recognition

Colocation services are services where the Company provides space, power and cooling to customers for housing and operating their IT system equipment in the Company’s data centers.

Cash received in advance from customers prior to the delivery of the colocation or managed hosting and cloud services is recorded as deferred revenue.

Cost of revenues

(t) Cost of revenues

Cost of revenues consists primarily of utility costs, depreciation of property and equipment, rental costs, labor costs and other costs directly attributable to the provision of the service revenue.

Research and development and advertising costs

(u) Research and development and advertising costs

Advertising costs amounted to RMB6,332, RMB7,454 and RMB14,778 in 2018, 2019 and 2020, respectively.

Government grants

(v) Government grants

Capitalized interest

(w) Capitalized interest

A reconciliation of total interest costs to ‘‘Interest expenses’’ as reported in the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 is as follows:


	Years ended December 31,
	2018	2019	2020

Total interest costs	749,730	1,040,898	1,402,015
Less: interest costs capitalized	(93,544)	(72,205)	(85,509)

Interest expenses	656,186	968,693	1,316,506

Debt issuance costs

(x) Debt issuance costs

Debt issuance costs are capitalized and are amortized over the life of the related debts based on the effective interest method. Such amortization is included as a component of interest expense.

Unamortised debt issuance costs of RMB273,822 and RMB226,085 are presented as a reduction of debt as of December 31, 2019 and 2020, respectively.

Income tax

(y) Income tax

Share-based compensation

(z) Share-based compensation

For further information on share-based compensation, see Note 19 below.

Employee benefits

(aa) Employee benefits

Foreign currency translation and foreign currency risks

(bb) Foreign currency translation and foreign currency risks


	RMB	USD	HKD	JPY	EUR	SGD
In PRC	3,528,438	1,337,547	—	—	—	—
In Hong Kong SAR	25,986	511,405	185,909	35,821	146	—
In US	—	10,271	—	—	—	—
In Singapore	—	97,757	—	—	—	1,927
Total in original currency	3,554,424	1,956,980	185,909	35,821	146	1,927
RMB equivalent	3,554,424	12,769,100	156,461	2,265	1,175	9,504

Concentration of credit risk

(cc) Concentration of credit risk

Earnings (loss) per share

(dd) Earnings (loss) per share

Changes in accounting principle

(ee) Changes in accounting principle

Recently issued accounting standards

(ff) Recently issued accounting standards

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of financial statement balances and amounts of the VIEs and their subsidiaries and schedule of net revenue and net income, operating, investing and financing cash flows of VIEs


	As of December 31,
	2019	2020
Assets
Current assets
Cash	730,960	1,310,269
Accounts receivable, net of allowance for doubtful accounts	858,764	1,388,128
VAT recoverable	46,817	85,760
Prepaid expenses	39,124	76,505
Other current assets	32,929	13,259
Total current assets	1,708,594	2,873,921

Property and equipment, net	2,911,727	2,760,618
Intangible assets, net	159,860	194,230
Operating lease right-of-use assets	91,329	430,525
Deferred tax assets	34,157	43,126
Restricted cash	29,508	49,905
VAT recoverable	136,011	113,684
Other non-current assets	75,873	115,315
Total assets	5,147,059	6,581,324

Liabilities
Current liabilities
Short-term borrowings and current portion of long-term borrowings	493,614	628,721
Accounts payable	181,448	194,325
Accrued expenses and other payables	160,401	152,534
Deferred revenue	68,003	90,192
Operating lease liabilities, current	31,869	50,888
Finance lease and other financing obligations, current	125,318	31,629
Total current third-party liabilities	1,060,653	1,148,289

Long-term borrowings, excluding current portion	1,335,084	1,213,020
Operating lease liabilities, non-current	66,387	361,502
Finance lease and other financing obligations, non-current	921,965	982,209
Deferred tax liabilities	76,297	91,036
Other long-term liabilities	29,950	34,281
Total third-party liabilities	3,490,336	3,830,337
Amounts due to GDS Holdings and its non-VIE subsidiaries, net	1,534,768	2,531,025
Total liabilities	5,025,104	6,361,362


	Years ended December 31,
	2018	2019	2020

Net revenue	2,712,875	4,013,561	5,453,802
Net (loss) income	(59,757)	99,857	129,254
Net cash provided by operating activities	739,848	414,424	899,132
Net cash used in investing activities	(1,063,826)	(201,995)	(278,744)
Net cash provided by (used in) financing activities	614,575	(43,547)	(20,682)

Schedule of estimated useful lives of property and equipment


Land		Remaining lease terms
Buildings		Shorter of the lease term and 30 years
Data center equipment
– Machinery		10 - 20 years
– Other equipment		3 - 5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets
Furniture and office equipment		3 - 5 years
Vehicles		5 years

Schedule of asset retirement obligations


Asset retirement obligations as of January 1, 2018		17,648
Additions		16,391
Accretion expense		1,840
Asset retirement obligations as of December 31, 2018		35,879
Additions		13,572
Accretion expense		2,990
Asset retirement obligations as of December 31, 2019		52,441
Additions		20,384
Accretion expense		4,084
Asset retirement obligations as of December 31, 2020		76,909

Schedule of weighted-average amortization period of acquired intangible assets


Customer relationships		5-15 years
Licenses		20 years

Schedule of reconciliation of total interest costs to "Interest expenses" as reported in the consolidated statements of operations


	Years ended December 31,
	2018	2019	2020

Total interest costs	749,730	1,040,898	1,402,015
Less: interest costs capitalized	(93,544)	(72,205)	(85,509)

Interest expenses	656,186	968,693	1,316,506

Schedule of cash and restricted cash deposited in major financial institutions located in PRC, Hong Kong SAR, US and Singapore


	RMB	USD	HKD	JPY	EUR	SGD
In PRC	3,528,438	1,337,547	—	—	—	—
In Hong Kong SAR	25,986	511,405	185,909	35,821	146	—
In US	—	10,271	—	—	—	—
In Singapore	—	97,757	—	—	—	1,927
Total in original currency	3,554,424	1,956,980	185,909	35,821	146	1,927
RMB equivalent	3,554,424	12,769,100	156,461	2,265	1,175	9,504

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

CASH AND RESTRICTED CASH (Tables)

12 Months Ended

Dec. 31, 2020

CASH AND RESTRICTED CASH

Schedule of reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statements of cash flows



	As of December 31,
	2019	2020

Cash	5,810,938	16,259,457
Restricted cash - current assets	34,299	86,829
Restricted cash - non-current assets	128,025	146,643

Total cash and restricted cash shown in the consolidated statements of cash flows	5,973,262	16,492,929

CONTRACT BALANCES (Tables)

12 Months Ended

Dec. 31, 2020

CONTRACT BALANCES

Schedule of accounts receivable, net


	As of December 31,
	2019	2020

Accounts receivable	881,177	1,482,498
Less: allowance for doubtful accounts	(133)	(2,163)
Accounts receivable, net	881,044	1,480,335

Including:
- Current portion	879,962	1,480,335
- Non-current portion	1,082	—

Schedule of allowance for doubtful accounts


	Years ended December 31,
	2018	2019	2020

Balance at the beginning of the year	—	241	133
Allowance made during the year	241	274	2,032
Write-off during the year	—	(382)	—
Foreign exchange impact	—	—	(2)
Balance at the end of the year	241	133	2,163

Schedule of deferred revenue


		Deferred revenue

Beginning balance as of January 1, 2020		105,735
Increase		5,804

Closing balance as of December 31, 2020		111,539

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment


	As of December 31,
	2019	2020
At cost:
Land	855,310	808,651
Buildings	5,964,048	9,552,953
Data center equipment	5,567,606	10,694,057
Leasehold improvement	6,111,733	7,307,207
Furniture and office equipment	61,974	97,039
Vehicles	4,115	4,383
	18,564,786	28,464,290
Less: Accumulated depreciation	(2,580,320)	(4,127,504)
	15,984,466	24,336,786
Construction in progress	3,200,173	5,259,275
Property and equipment, net	19,184,639	29,596,061

Schedule of depreciation of property and equipment


	Years ended December 31,
	2018	2019	2020

Cost of revenue	674,560	1,045,446	1,418,846
General and administrative expenses	7,319	10,448	120,604
Research and development expenses	572	1,277	3,680
	682,451	1,057,171	1,543,130

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2020

INTANGIBLE ASSETS, NET

Schedule of intangible assets


		As of December 31,
	Note	2019	2020

Customer relationships	8	547,322	952,100
Licenses		6,000	15,782
		553,322	967,882
Less: accumulated amortization		(158,694)	(182,560)
Intangible assets, net		394,628	785,322

Schedule of estimated future amortization expense


Fiscal year ending December 31,
2021		114,844
2022		114,844
2023		113,302
2024		106,443
2025		92,131
Thereafter		243,758
Total		785,322

PREPAID LAND USE RIGHTS (Tables)

12 Months Ended

Dec. 31, 2020

PREPAID LAND USE RIGHTS

Schedule of prepaid land use rights


	As of December 31,
	2019	2020

Prepaid land use rights	782,319	736,695
Less: Accumulated amortization	(35,132)	(58,505)
Prepaid land use rights, net	747,187	678,190

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2020

BUSINESS COMBINATIONS

Schedule of movement of goodwill


	As of December 31,
	2019	2020

Balance at the beginning of the year	1,751,970	1,905,840
Addition during the year	153,870	746,015
Measurement period adjustments	—	(55,462)
Balance at end of year	1,905,840	2,596,393

Guangzhou 3

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


	Note
Fair value of consideration	(i)	247,937
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(62)
Accounts receivable		(13,995)
Property and equipment	(ii)	(780,312)
Identifiable intangible assets	(iii)	(130,000)
Other assets		(43,039)
Accounts payable		471,532
Finance lease and other financing obligations, non-current		282,051
Short-term borrowings		47,580
Long-term borrowings		30,000
Deferred tax liabilities		26,503
Other liabilities		2,849
Total identifiable net assets		(106,893)
Goodwill	(iv)	141,044

Note (i):The fair value of consideration represents the present value of the purchase price of RMB262,244.

Note (ii):Property and equipment acquired included properties acquired under finance lease of RMB291,000.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB130,000 with an estimated useful life of 7 years.

Note (iv):

Shanghai 11

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


	Note
Fair value of consideration	(i)	319,119
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(404)
Property and equipment		(233,405)
Identifiable intangible assets	(ii)	(57,000)
Other assets		(94,647)
Accounts payable		91,136
Deferred tax liabilities		9,995
Other liabilities		5,377
Total identifiable net assets		(278,948)
Goodwill	(iii)	40,171

Note (i):

The fair value of the consideration represents the present value of the purchase price of RMB320,000.

Note (ii):

Note (iii):

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target entity with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

Target Group Guangzhou 6

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


	Note
Fair value of consideration	(i)	423,075
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(12,091)
Property and equipment	(ii)	(493,026)
Operating lease ROU assets		(9,168)
Identifiable intangible assets	(iii)	(15,000)
Other assets		(44,549)
Accounts payable		118,486
Finance lease and other financing obligations, current		16,828
Operating lease liabilities, current		886
Finance lease and other financing obligations, non-current		157,366
Operating lease liabilities, non-current		8,282
Deferred tax liabilities		1,040
Other liabilities		1,741
Total identifiable net assets		(269,205)
Goodwill	(iv)	153,870

Note (i):

The fair value of consideration represents the present value of the purchase price of RMB431,727.

Note (ii):

Property and equipment acquired included properties acquired under finance lease of RMB174,194.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB15,000 with an estimated useful life of 7.8 years.

Note (iv):

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is assigned to the design, build-out and operation of data centers reporting unit. Goodwill primarily represents the expected synergies from combining operations of the target entity with those of the Company and intangible assets that do not qualify for separate recognition and is not deductible for tax purposes.

Beijing 10, 11 and 12

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


		Estimated
		fair value, as		Estimated
		previously	Adjustments	fair value, as
	Note	reported	(Note (v))	adjusted
Fair value of consideration		847,586	(59,032)	788,554
Effective settlement of pre-existing relationships upon consolidation	(i)	34,477		34,477
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(2,349)		(2,349)
Accounts receivable		(81,027)	(2,107)	(83,134)
Property and equipment	(ii)	(1,971,432)	(36,176)	(2,007,608)
Operating lease ROU assets		(94,821)		(94,821)
Identifiable intangible assets	(iii)	(191,000)		(191,000)
Other assets		(149,956)	7,327	(142,629)
Accounts payable		727,043	29,864	756,907
Finance lease and other financing obligations, current		171,979	2,980	174,959
Operating lease liabilities, current		6,092	890	6,982
Finance lease and other financing obligations, non-current		1,062,114		1,062,114
Operating lease liabilities, non-current		92,360		92,360
Deferred tax liabilities		13,833		13,833
Other liabilities		38,586	792	39,378
Total identifiable net assets		(378,578)	3,570	(375,008)
Goodwill	(iv)	503,485	(55,462)	448,023

Note (i):

Prior to the acquisition, the Company had receivables from the target group of RMB34,477, which was effectively settled upon completion of the acquisition.

Note (ii):

Property and equipment acquired included properties acquired under finance lease of RMB632,427.

Note (iii):

Identifiable intangible assets acquired consisted of customer relationships of RMB191,000 with an estimated useful life of 7.6 years.

Note (iv):

Note (v):

Shanghai 19

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


	Note
Fair value of consideration		62,480
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(2,001)
Property and equipment		(372,093)
Operating lease ROU assets		(215,230)
Identifiable intangible assets	(i)	(56,100)
Other assets		(18,354)
Accounts payable		360,381
Operating lease liabilities, current		2,676
Operating lease liabilities, non-current		186,532
Deferred tax liabilities		16,322
Other liabilities		69,122
Total identifiable net assets		(28,745)
Goodwill	(ii)	33,735

Note (i):

Identifiable intangible assets acquired consisted of customer relationships of RMB56,100 with an estimated useful life of 12.1 years.

Note (ii):

Beijing 9

BUSINESS COMBINATIONS

Schedule of the identifiable assets acquired and liabilities assumed in the business combination


	Note
Fair value of consideration	(i)	793,043
Effective settlement of pre-existing relationships upon consolidation	(ii)	(65,706)
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(451)
Accounts receivable		(55,072)
Property and equipment	(iii)	(403,556)
Operating lease ROU assets		(82,729)
Identifiable intangible assets	(iv)	(202,500)
Other assets		(70,149)
Accounts payable		16,472
Finance lease and other financing obligations, current		8,028
Operating lease liabilities, current		6,568
Finance lease and other financing obligations, non-current		117,002
Operating lease liabilities, non-current		95,729
Deferred tax liabilities		44,965
Other liabilities		7,151
Total identifiable net assets		(518,542)
Goodwill	(v)	208,795

Note (i): The fair value of consideration represents the present value of the estimated purchase price of RMB811,507 after deduction of a contingent consideration of RMB5,462 not expected to be paid.

Note (ii):Prior to the acquisition, the Company had payables to the target entity of RMB65,706, which was effectively settled upon completion of the acquisition.

Note (iii):Property and equipment acquired included properties acquired under finance lease of RMB101,113.

Note (iv):Identifiable intangible assets acquired consisted of customer relationships of RMB202,500 with an estimated useful life of 6.5 years.

LOANS AND BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2020

LOANS AND BORROWINGS

Schedule of borrowings


	As of December 31,
	2019	2020

Short-term borrowings	397,213	1,230,756
Current portion of long-term borrowings	740,524	922,634
Sub-total	1,137,737	2,153,390
Long-term borrowings, excluding current portion	8,028,473	10,566,746
Total loans and borrowings	9,166,210	12,720,136

Schedule of short-term borrowings


	As of December 31,
	2019	2020

Unsecured short-term loans and borrowings	80,000	221,436
Secured short-term loans and borrowings	317,213	1,009,320
	397,213	1,230,756

Schedule of assets to secure the short-term borrowings


	As of December 31,
	2019	2020

Accounts receivable	11,535	76,547

Schedule of long-term borrowings


	As of December 31,
	2019	2020

Unsecured long-term loans and borrowings	42,500	112,500
Secured long-term loans and borrowings	8,726,497	11,376,880
	8,768,997	11,489,380

Schedule of assets to secure the long-term borrowings


	As of December 31,
	2019	2020

Accounts receivable	508,847	743,031
Property and equipment, net	2,493,872	2,918,670
Prepaid land use rights, net	741,032	678,190
Operating lease ROU assets	—	599,120
	3,743,751	4,939,011

Schedule of aggregate maturities of the long-term borrowings



		Long-term borrowings
Twelve months ending December 31,
2021		922,634
2022		1,585,344
2023		2,581,585
2024		2,020,680
2025		1,406,764
Thereafter		2,972,373
		11,489,380

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

ACCRUED EXPENSES AND OTHER PAYABLES (Tables)

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER PAYABLES

Schedule of accrued expenses and other payables


	As of December 31,
	2019	2020

Accrued interest expenses	43,776	65,390
Accrued debt issuance costs and other financing costs	28,082	32,512
Income tax payable	93,307	102,683
Other tax payables	28,259	39,372
Consideration payables for acquisitions	362,032	888,693
Deferred government grants	6,003	—
Accrued payroll and welfare benefits	97,486	114,632
Accrued professional fees	41,630	15,281
Accrued data center outsourcing service fees	17,989	1,928
Amount due to related parties	11,988	15,360
Amount due to a financial institution	34,190	83,305
Other accrued operating expenses	38,020	27,152
Other payables	15,121	9,673
	817,883	1,395,981

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

LEASES

Schedule of of lease cost


	Years ended December 31,
	2019	2020

Finance lease cost:
- Amortization of right-of-use assets	222,101	423,075
- Interest on lease liabilities	299,511	465,692
Operating lease cost	100,469	195,869
Short-term lease cost	5,004	19,987
Variable lease cost (Note)	—	(55,599)

Total lease cost	627,085	1,049,024

Schedule of supplemental cash flow information related to leases


	Years ended December 31,
	2019	2020

Cash paid for amounts included in measurement of lease liabilities (Note):
- Operating cash flows from finance leases	(248,417)	(389,679)
- Operating cash flows from operating leases	(116,295)	(141,480)
- Financing cash flows from finance leases	(302,679)	(198,234)

Non-cash information on lease liabilities arising from obtaining ROU assets
- Finance leases	708,757	1,099,698
- Operating leases	333,775	553,154

Schedule of weighted average remaining lease term and weighted average discount rate for leases


	As of December 31,
	2019	2020

Weighted average remaining lease term:
- Finance leases	15.2	13.7
- Operating leases	15.6	15.6

Weighted average discount rate:
- Finance leases	6.91%	7.00%
- Operating leases	6.35%	6.23%

Summary of maturities of lease liabilities


	As of December 31, 2019					As of December 31, 2020
			Total of					Total of
			finance lease					finance lease
		Other	and other	Operating			Other	and other	Operating
	Finance lease	financing	financing	lease		Finance lease	financing	financing	lease
	obligations	obligations	obligations	obligations	Total	obligations	obligations	obligations	obligations	Total
Within 1 year	502,261	32,232	534,493	97,993	632,486	577,933	225,350	803,283	180,447	983,730
After 1 year but within 2 years	399,200	37,462	436,662	72,046	508,708	600,348	354,625	954,973	190,243	1,145,216
After 2 years but within 3 years	399,843	72,845	472,688	64,151	536,839	620,461	356,204	976,665	149,300	1,125,965
After 3 years but within 4 years	414,126	69,248	483,374	64,086	547,460	650,855	377,930	1,028,785	151,545	1,180,330
After 4 years but within 5 years	429,902	65,688	495,590	64,547	560,137	681,090	361,073	1,042,163	151,063	1,193,226
After 5 years	5,905,408	163,480	6,068,888	880,855	6,949,743	7,792,794	723,755	8,516,549	1,839,384	10,355,933
Total	8,050,740	440,955	8,491,695	1,243,678	9,735,373	10,923,481	2,398,937	13,322,418	2,661,982	15,984,400

Less: total future interest	(3,387,232)	(121,742)	(3,508,974)	(478,541)	(3,987,515)	(4,343,379)	(578,822)	(4,922,201)	(1,032,829)	(5,955,030)
Less: estimated construction costs	—	(9,127)	(9,127)	—	(9,127)	—	(47,924)	(47,924)	-	(47,924)

Present value of lease and other financing obligations	4,663,508	310,086	4,973,594	765,137	5,738,731	6,580,102	1,772,191	8,352,293	1,629,153	9,981,446
Including:
- Current portion			222,473	55,139	277,612			254,412	86,258	340,670
- Non-current portion			4,751,121	709,998	5,461,119			8,097,881	1,542,895	9,640,776

Schedule of assets to secure lease and other financing obligations


	As of December 31,
	2019	2020

Accounts receivable	—	128,353
Property and equipment, net	—	578,777
	—	707,130

OTHER LONG-TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

OTHER LONG-TERM LIABILITIES

Schedule of other long-term liabilities


	As of December 31,
	2019	2020

Consideration payable for acquisitions	23,062	97,457
Payables for purchase of property and equipment	231,459	139,162
Deferred revenue - non-current (Note 4)	15,419	14,871
Deferred government grants	6,507	6,196
Interest rate swap contracts (Note 16)	10,408	—
Asset retirement obligations	52,441	76,909
Others	6,241	14,662
Total	345,537	349,257

REDEEMABLE PREFERRED SHARES (Tables)

12 Months Ended

Dec. 31, 2020

REDEEMABLE PREFERRED SHARES

Schedule of movement of the redeemable preferred shares


		Redeemable
		preferred shares
Balance at January 1, 2019		—
Issuance of redeemable preferred shares		989,349
Change in redemption value of redeemable preferred shares		17,760
Accrual of redeemable preferred shares dividends		40,344
Settlement of redeemable preferred shares dividends		(25,014)
Foreign exchange impact		39,542

Balance at December 31, 2019		1,061,981
Accrual of redeemable preferred shares dividends		52,709
Settlement of redeemable preferred shares dividends		(65,489)
Foreign exchange impact		(68,291)

Balance at December 31, 2020		980,910

REDEEMABLE NON-CONTROLLING INTERESTS (Tables)

12 Months Ended

Dec. 31, 2020

REDEEMABLE PREFERRED SHARES

Schedule of change in the carrying amount of redeemable non-controlling interests

The change in the carrying amount of redeemable non-controlling interests is as follows:


		Year ended
		December 31, 2020
Capital injection from CPE Fund		105,000
Net loss attributable to redeemable non-controlling interests		(2,807)
Accretion to redemption value of redeemable non-controlling interests		18,627

		120,820

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of fair values of derivatives included in the consolidated balance sheets


	Consolidated balance
	sheets location	As of December 31, 2019

Interest rate swap contracts (not designated as hedging instruments)	Accrued expenses and other payables	351
Interest rate swap contracts (not designated as hedging instruments)	Other long-term liabilities	10,408

Schedule of location in the consolidated statements of operations and the amount of realized and unrealized gains (losses) recognized for the derivative contracts not designated as hedging instruments


	Consolidated
	statements of	Years ended December 31,
	operations location	2018	2019	2020

Interest rate swap contracts (not designated as hedging instruments) — realized loss	Interest expenses	(75)	(1,652)	(19,814)
Interest rate swap contracts (not designated as hedging instruments) — unrealized (loss) gain	Interest expenses	156	(10,606)	10,039

		81	(12,258)	(9,775)

FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE MEASUREMENT

Schedule of assets and liabilities measured at fair value on a recurring basis


		Fair value measurement using
		Level 2 inputs

Liabilities
- Interest rate swap contracts (Note 16)		10,759

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2020

SHARE-BASED COMPENSATION

Summary of the option activity


			Weighted
			average
		Weighted	grant-date
	Number	average	fair value
	of options	exercise price	per option
		(RMB)	(RMB)
Options outstanding at January 1, 2018	28,087,236	5.1	3.2
Granted	500,000	5.0	31.2
Exercised	(3,614,464)	5.2	4.5
Forfeited	(193,340)	5.0	6.2

Options outstanding at December 31, 2018	24,779,432	5.3	2.2
Granted	—
Exercised	(10,150,336)	5.6	3.5
Forfeited	—

Options outstanding at December 31, 2019	14,629,096	5.4	1.7
Granted	—
Exercised	(14,222,096)	5.5	1.6
Forfeited	—

Options outstanding at December 31, 2020	407,000	5.1	1.6

Options vested and expected to be vested at December 31, 2020	407,000	5.1	1.6

Summary of information with respect to stock options outstanding and stock options exercisable


		Weighted
		average	Weighted
	Number	remaining	average
	of shares	contractual life	exercise price
		(years)	(RMB)
Options outstanding and exercisable	407,000	0.3	5.1

Summary of the restricted share activity


		Weighted average grant-
	Number of	date fair value per share
	Shares	(RMB)

Unvested at January 1, 2018	24,525,620	5.3
Granted	13,202,512	14.5
Vested	(7,326,620)	6.0
Forfeited	(891,008)	5.9

Unvested at December 31, 2018	29,510,504	9.3
Granted	14,551,472	34.2
Vested	(9,122,432)	9.3
Forfeited	(1,582,248)	10.7

Unvested at December 31, 2019	33,357,296	22.4
Granted	11,710,848	66.7
Vested	(12,684,640)	14.1
Forfeited	(1,364,736)	25.1

Unvested at December 31, 2020	31,018,768	42.4

Assumptions used to estimate fair value of restricted shares granted


Grant date:	August 2018		August 2019		August 2020
Risk-free rate of return	2.047% - 2.418	%	1.67% - 1.88	%	0.14% - 0.19	%
Volatility	71.85	%	63.22	%	59.23	%
Expected dividend yield	0.00	%	0.00	%	0.00	%
Share price at grant date	US$3.125		US$5.02375		US$10.1475
	(RMB21.3)		(RMB34.6)		(RMB70.5)
Expected term	1 – 3 years		1 – 3 years		1 – 3 years

Summary of share-based compensation expenses


	Years ended December 31,
	2018	2019	2020

Costs of revenue	18,008	46,007	89,943
Selling and marketing expenses	25,213	39,436	54,204
General and administrative expenses	61,707	101,949	184,943
Research and development expenses	949	2,364	4,596
Total share-based compensation expenses	105,877	189,756	333,686

REVENUE (Tables)

12 Months Ended

Dec. 31, 2020

REVENUE

Schedule of Net revenue


	Years ended December 31,
	2018	2019	2020

Colocation services	2,104,259	3,261,745	4,710,923
Managed service and others	655,231	832,826	1,005,945
Service revenue	2,759,490	4,094,571	5,716,868
Equipment sales	32,587	27,834	22,104
Total	2,792,077	4,122,405	5,738,972

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAX

Schedule of operating results before income tax and the provision for income taxes by tax jurisdictions


	Years ended December 31,
	2018	2019	2020
Loss (income) before income taxes:
PRC	237,232	68,080	(19,765)
Other jurisdictions	202,427	358,353	568,201
Total loss before income taxes	439,659	426,433	548,436

Current tax expenses:
PRC	27,206	65,819	210,503
Other jurisdictions	—	3	14
Total current tax expenses	27,206	65,822	210,517

Deferred tax benefits:
PRC	(36,597)	(50,172)	(89,739)
Other jurisdictions	—	—	—
Total deferred tax benefits	(36,597)	(50,172)	(89,739)

Total income taxes (benefits) expenses	(9,391)	15,650	120,778

Schedule of reconciliation of differences between PRC statutory tax rate and effective tax rate


	Years ended December 31,
	2018		2019		2020

PRC enterprise income tax rate	25.0	%	25.0	%	25.0	%
Non-PRC resident enterprises not subject to income tax	(9.2)	%	(21.4)	%	(27.6)	%
Tax differential for entities in non-PRC jurisdiction	(1.2)	%	(1.4)	%	(1.3)	%
Preferential tax rate	0.0	%	0.0	%	(0.3)	%
Tax effect of current year permanent differences	(1.3)	%	1.5	%	1.0	%
Expiration of unused net operating losses	(10.1)	%	(1.4)	%	(1.3)	%
Non-taxable income	0.0	%	0.0	%	2.5	%
Change in valuation allowance	(1.0)	%	(8.7)	%	(21.3)	%
Return to provision adjustment	(0.1)	%	2.7	%	1.3	%
	2.1	%	(3.7)	%	(22.0)	%

Schedule of components of deferred tax assets and liabilities


	As of December 31,
	2019	2020
Deferred tax assets:
Allowance for accounts receivable	12	1,959
Government subsidy	3,127	1,549
Accrued expenses	27,601	24,597
Asset retirement obligation	13,110	19,227
Net operating losses carry forwards	267,159	386,999
Total gross deferred tax assets	311,009	434,331
Valuation allowance on deferred tax assets	(205,976)	(328,821)
Deferred tax assets, net of valuation allowance	105,033	105,510

Deferred tax liabilities:
Property and equipment	(171,656)	(154,480)
Intangible assets	(97,102)	(195,093)
Prepaid land use rights	(1,612)	(1,572)
Leases	(9,568)	(70,284)
Accounts receivable	(4,836)	—
Total deferred tax liabilities	(284,774)	(421,429)

Net deferred tax liabilities	(179,741)	(315,919)

Analysis as:
Deferred tax assets	72,931	146,088
Deferred tax liabilities	(252,672)	(462,007)
Net deferred tax liabilities	(179,741)	(315,919)

Schedule of movement of the valuation allowance for the deferred tax assets


	Years ended December 31,
	2018	2019	2020

Balance at the beginning of the year	152,241	155,852	205,976
Increase during the year	3,611	50,124	122,845
Balance at the end of the year	155,852	205,976	328,821

LOSS PER ORDINARY SHARE (Tables)

12 Months Ended

Dec. 31, 2020

LOSS PER ORDINARY SHARE

Schedule of computation of basic and diluted loss per share


	Years ended December 31,
	2018	2019	2020

Net loss	(430,268)	(442,083)	(669,214)

Net loss attributable to redeemable non-controlling interests	—	—	2,807
Accretion to redemption value of redeemable non-controlling interests	—	—	(18,627)
Change in redemption value of redeemable preferred shares	—	(17,760)	—
Cumulative dividend on redeemable preferred shares	—	(40,344)	(52,709)
Net loss available to ordinary shareholders	(430,268)	(500,187)	(737,743)

Weighted average number of ordinary shares outstanding - basic and diluted	990,255,959	1,102,953,366	1,253,559,523

Loss per ordinary share - basic and diluted	(0.43)	(0.45)	(0.59)

Schedule of securities excluded from the computation of diluted loss per share


	Years ended December 31,
	2018	2019	2020

Share options/restricted shares	54,289,936	47,986,392	31,425,768
Convertible bonds payable	46,527,600	46,527,600	46,526,049
Total	100,817,536	94,513,992	77,951,817

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

Schedule of capital commitments outstanding not provided for in the financial statements



	As of December 31,
	2019	2020

Contracted for	2,722,084	3,949,623

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

Schedule of material related party relationship


Name of party		Relationship

STT GDC		Principal ordinary shareholder of the Company
STT Singapore DC Pte. Ltd.		Subsidiary of STT GDC
STT DEFU 2 Pte. Ltd.		Subsidiary of STT GDC

Schedule of major transactions with related parties


		Years ended December 31,
		2018	2019	2020

Commission income	(Note)
STT Singapore DC Pte. Ltd.		—	624	553
STT DEFU 2 Pte. Ltd.		—	332	485
		—	956	1,038

Schedule of major balances with related parties


		As of December 31,
		2019	2020

Amount due to related parties:	(Note)
STT Singapore DC Pte. Ltd.		5,350	7,938
STT DEFU 2 Pte. Ltd.		6,638	7,422
		11,988	15,360

PARENT ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

PARENT ONLY FINANCIAL INFORMATION

Schedule of condensed financial statements

Condensed Balance Sheets


	As of December 31,
	2019	2020
Assets

Current assets
Cash	2,560,388	12,312,249
Prepaid expenses	7,048	39,187
Other current assets	21,537	23,136
Total current assets	2,588,973	12,374,572
Restricted cash	27,225	—
Investment and loans to subsidiaries	11,539,590	16,146,058
Other non-current assets	4,954	3,616
Total assets	14,160,742	28,524,246

Liabilities, Mezzanine Equity and Shareholders’ Equity

Current liabilities
Accounts payable	7,168	12,451
Accrued expenses and other payables	49,546	29,790
Due to subsidiaries	928	868
Total current liabilities	57,642	43,109

Long-term borrowings	681,235	—
Convertible bonds payable	2,049,654	1,928,466
Other long-term liabilities	16,649	5,769
Total liabilities	2,805,180	1,977,344

Mezzanine equity
Redeemable preferred shares (US$0.00005 par value; 150,000 shares authorized, issued and outstanding as of December 31, 2019 and December 31, 2020, respectively; Redemption value of RMB1,061,981 and RMB980,910 as of December 31, 2019 and December 31, 2020, respectively; Liquidation value of RMB1,537,636 and RMB2,576,578 as of December 31, 2019 and December 31, 2020, respectively)	1,061,981	980,910
Total mezzanine equity	1,061,981	980,910

Shareholders' equity
Ordinary shares (US$0.00005 par value; 2,002,000,000 authorized; 1,148,842,379 and 1,427,590,059 Class A ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively; 67,590,336 Class B ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively)	412	507
Additional paid-in capital	12,403,043	28,728,717
Accumulated other comprehensive loss	(52,684)	(439,635)
Accumulated deficit	(2,057,190)	(2,723,597)
Total shareholders’ equity	10,293,581	25,565,992
Commitments and contingencies

Total liabilities, mezzanine equity and shareholders’ equity	14,160,742	28,524,246

Condensed Statements of Operations


	Years ended December 31,
	2018	2019	2020

Net revenue	—	—	—
Cost of revenue	(21,132)	(50,201)	(94,312)
Gross loss	(21,132)	(50,201)	(94,312)

Operating expenses
Selling and marketing expenses	(26,595)	(40,721)	(58,649)
General and administrative expenses	(96,581)	(153,854)	(224,934)
Research and development expenses	(949)	(2,364)	(4,596)
Loss from operations	(145,257)	(247,140)	(382,491)

Other income (expenses):
Interest income	14,907	48,020	18,641
Interest expenses	(48,809)	(128,539)	(155,605)
Equity in loss of subsidiaries	(251,085)	(114,418)	(144,153)
Others, net	(24)	(6)	(2,799)
Loss before income taxes	(430,268)	(442,083)	(666,407)

Income tax expenses	—	—	—
Net loss	(430,268)	(442,083)	(666,407)

Condensed Statements of Comprehensive Loss


	Years ended December 31,
	2018	2019	2020

Net loss	(430,268)	(442,083)	(666,407)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of nil tax	61,434	86,570	(386,951)
Comprehensive loss	(368,834)	(355,513)	(1,053,358)

Condensed Statements of Cash Flows


	Years ended December 31,
	2018	2019	2020

Operating activities:
Net cash used in operating activities	(33,729)	(48,514)	(45,269)

Investing activities:
Increase of due from subsidiaries	(3,846,353)	(4,473,682)	(4,940,005)
Net cash used in investing activities	(3,846,353)	(4,473,682)	(4,940,005)

Financing activities:
Proceeds from long-term borrowings	413,433	268,100	—
Payment of issuance cost of borrowings	(25,751)	—	(10,619)
Payment of commitment cost of borrowings	—	—	(45,968)
Repayment of long-term borrowings	—	—	(657,820)
Proceeds from exercise of stock options	16,866	55,469	78,748
Net proceeds from issuance of convertible bonds	1,867,304	—	—
Net proceeds from issuance of ordinary shares	1,283,308	4,934,126	15,974,517
Net proceeds from issuance of redeemable preferred shares	—	989,349	—
Payment of redeemable preferred shares dividends	—	(25,014)	(65,489)
Net cash provided by financing activities	3,555,160	6,222,030	15,273,369
Effect of exchange rate changes on cash and restricted cash	143,216	70,291	(563,459)

Net (decrease) increase in cash and restricted cash	(181,706)	1,770,125	9,724,636
Cash and restricted cash at beginning of year	999,194	817,488	2,587,613
Cash and restricted cash at end of year	817,488	2,587,613	12,312,249

Supplemental disclosures of cash flow information
Interest paid	24,308	88,818	92,509

Supplemental disclosures of non-cash investing and financing activities
Settlement of liability-classified restricted share award	6,357	7,984	10,089
Conversion of convertible bonds	—	—	65

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2019 CNY (¥) director	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Shareholders of Management HoldCo
VIEs financial information
Loans	¥ 1,000		¥ 1,000
GDS Beijing and GDS Shanghai
VIEs financial information
Ownership transferred (as a percent)	100.00%
Number of directors replacing prior sold director \| director	3
VIEs
VIEs financial information
Costs for outsourcing and other services provided by other consolidated entities within the Company		¥ 3,076,398	2,017,032	¥ 1,260,481
VIEs \| Management HoldCo
VIEs financial information
Loans	¥ 310,100		¥ 310,100
Right of GDS Investment Company to require repayment of the loans, prior notice period			30 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial statement balances and amounts of the VIEs and their subsidiaries (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash	¥ 16,259,457	¥ 5,810,938
Accounts receivable, net of allowance for doubtful accounts	1,480,335	879,962
VAT recoverable	155,620	129,994
Prepaid expenses	163,986	80,913
Other current assets	172,579	148,603
Total current assets	18,318,806	7,084,709
Property and equipment, net	29,596,061	19,184,639
Intangible assets, net	785,322	394,628
Operating lease right-of-use assets	3,059,700	796,679
Deferred tax assets	146,088	72,931
Restricted cash	146,643	128,025
VAT recoverable	1,445,521	888,483
Other non-current assets	486,071	289,410
Total assets	57,258,795	31,492,531
Current liabilities
Short-term borrowings and current portion of long-term borrowings	2,153,390	1,137,737
Accounts payable	3,657,112	1,675,966
Accrued expenses and other payables	1,395,981	817,883
Deferred revenue	96,668	90,316
Operating lease liabilities, current	86,258	55,139
Finance lease and other financing obligations, current	254,412	222,473
Total current liabilities	7,643,821	3,999,514
Long-term borrowings, excluding current portion	10,566,746	8,028,473
Operating lease liabilities, non-current	1,542,895	709,998
Finance lease and other financing obligations, non-current	8,097,881	4,751,121
Deferred tax liabilities	462,007	252,672
Other long-term liabilities	349,257	345,537
Amounts due to GDS Holdings and its non-VIE subsidiaries, net	15,360	11,988
Total liabilities	30,591,073	20,136,969
Net revenue, net income, operating, investing and financing cash flows
Net revenue	5,738,972	4,122,405	¥ 2,792,077
Net (loss) income	(669,214)	(442,083)	(430,268)
Net cash provided by operating activities	320,887	293,436	(12,910)
Net cash used in investing activities	(9,378,007)	(5,131,231)	(4,733,050)
Net cash provided by (used in) financing activities	20,143,661	8,361,939	4,876,806
Asset Pledged as Collateral [Member]
Current assets
Property and equipment, net	3,497,447	2,493,872
VIEs
Current assets
Cash	1,310,269	730,960
Accounts receivable, net of allowance for doubtful accounts	1,388,128	858,764
VAT recoverable	85,760	46,817
Prepaid expenses	76,505	39,124
Other current assets	13,259	32,929
Total current assets	2,873,921	1,708,594
Property and equipment, net	2,760,618	2,911,727
Intangible assets, net	194,230	159,860
Operating lease right-of-use assets	430,525	91,329
Deferred tax assets	43,126	34,157
Restricted cash	49,905	29,508
VAT recoverable	113,684	136,011
Other non-current assets	115,315	75,873
Total assets	6,581,324	5,147,059
Current liabilities
Amounts due to GDS Holdings and its non-VIE subsidiaries, net	2,531,025	1,534,768
Total liabilities	6,361,362	5,025,104
Net revenue, net income, operating, investing and financing cash flows
Net revenue	5,453,802	4,013,561	2,712,875
Net (loss) income	129,254	99,857	(59,757)
Net cash provided by operating activities	899,132	414,424	739,848
Net cash used in investing activities	(278,744)	(201,995)	(1,063,826)
Net cash provided by (used in) financing activities	(20,682)	(43,547)	¥ 614,575
VIEs \| Accounts receivable
Current liabilities
Assets pledged	66,969	83,468
VIEs \| Property and equipment, net
Current liabilities
Assets pledged	102,248	114,344
VIEs \| Third party
Current liabilities
Short-term borrowings and current portion of long-term borrowings	628,721	493,614
Accounts payable	194,325	181,448
Accrued expenses and other payables	152,534	160,401
Deferred revenue	90,192	68,003
Operating lease liabilities, current	50,888	31,869
Finance lease and other financing obligations, current	31,629	125,318
Total current liabilities	1,148,289	1,060,653
Long-term borrowings, excluding current portion	1,213,020	1,335,084
Operating lease liabilities, non-current	361,502	66,387
Finance lease and other financing obligations, non-current	982,209	921,965
Deferred tax liabilities	91,036	76,297
Other long-term liabilities	34,281	29,950
Total liabilities	¥ 3,830,337	¥ 3,490,336

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fulfilment costs (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other non-current assets
Capitalized fulfilment cost	¥ 128,983	¥ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details)	12 Months Ended
	Dec. 31, 2020
Buildings \| Maximum
Property and equipment
Estimated useful life (in years)	30 years
Machinery \| Minimum
Property and equipment
Estimated useful life (in years)	10 years
Machinery \| Maximum
Property and equipment
Estimated useful life (in years)	20 years
Other equipment \| Minimum
Property and equipment
Estimated useful life (in years)	3 years
Other equipment \| Maximum
Property and equipment
Estimated useful life (in years)	5 years
Furniture and office equipment \| Minimum
Property and equipment
Estimated useful life (in years)	3 years
Furniture and office equipment \| Maximum
Property and equipment
Estimated useful life (in years)	5 years
Vehicles
Property and equipment
Estimated useful life (in years)	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset retirement costs (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Activity of the asset retirement obligation liability
Asset retirement obligations at beginning of the year	¥ 52,441	¥ 35,879	¥ 17,648
Additions	20,384	13,572	16,391
Accretion expense	4,084	2,990	1,840
Asset retirement obligations at end of the year	¥ 76,909	¥ 52,441	¥ 35,879

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details)	12 Months Ended
	Dec. 31, 2020
Customer relationships \| Minimum
Intangible assets
Weighted-average amortization period (in years)	5 years
Customer relationships \| Maximum
Intangible assets
Weighted-average amortization period (in years)	15 years
Licenses
Intangible assets
Weighted-average amortization period (in years)	20 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Prepaid land use rights (Details) - Prepaid land use rights, net	12 Months Ended
	Dec. 31, 2020
Minimum
Prepaid land use rights
Amortization based on remaining terms (in years)	26 years
Maximum
Prepaid land use rights
Amortization based on remaining terms (in years)	41 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Impairment losses for goodwill	¥ 0	¥ 0	¥ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of long-lived assets (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Impairment losses for long-lived assets	¥ 0	¥ 0	¥ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Value-added-tax ("VAT") (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Value-added-tax ("VAT")
VAT recoverable	¥ 155,620	¥ 129,994
VAT recoverable	1,445,521	888,483
Current assets
Value-added-tax ("VAT")
VAT recoverable	155,620	129,994
Noncurrent assets
Value-added-tax ("VAT")
VAT recoverable	1,445,521	888,483
Accrued expenses and other payables
Value-added-tax ("VAT")
VAT payables	¥ 6,838	¥ 7,886

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details)	12 Months Ended
	Dec. 31, 2020
Maximum \| Consulting services
Revenue recognition
Contract service period	1 year

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and development and advertising costs, Government grants, Capitalized interest and Debt issuance cost (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Research and development and advertising costs
Research and development expenses	¥ 40,049	¥ 21,627	¥ 13,915
Advertising costs	14,778	7,454	6,332
Government grants
Deferred government grants in other long-term liabilities	6,196	6,507
Deferred government grants in accrued expenses and other payables		6,003
Capitalized interest
Total interest costs	1,402,015	1,040,898	749,730
Less: interest costs capitalized	(85,509)	(72,205)	(93,544)
Interest expenses	1,316,506	968,693	¥ 656,186
Debt issuance costs
Unamortised debt issuance costs	226,085	273,822
Other long-term liabilities
Government grants
Deferred government grants in other long-term liabilities	6,196	6,507
Accrued expenses and other payables
Government grants
Deferred government grants in accrued expenses and other payables	¥ 0	¥ 6,003

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Employee benefits (Details)	12 Months Ended
	Dec. 31, 2020
Minimum
Employee benefits
Employer contribution (as a percent)	28.00%
Maximum
Employee benefits
Employer contribution (as a percent)	49.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation and foreign currency risks (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 HKD ($)	Dec. 31, 2020 JPY (¥)	Dec. 31, 2020 SGD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)
RMB
Cash and restricted cash \| ¥	¥ 3,554,424						¥ 2,119,758
USD
Cash and restricted cash	12,769,100					$ 1,956,980
HKD
Cash and restricted cash	156,461		$ 185,909
JPY
Cash and restricted cash	2,265			¥ 35,821
EUR
Cash and restricted cash	1,175	€ 146
SGD
Cash and restricted cash	9,504				$ 1,927
PRC \| RMB
Cash and restricted cash \| ¥	3,528,438
PRC \| USD
Cash and restricted cash						1,337,547
Hong Kong SAR \| RMB
Cash and restricted cash \| ¥	¥ 25,986
Hong Kong SAR \| USD
Cash and restricted cash						511,405
Hong Kong SAR \| HKD
Cash and restricted cash			$ 185,909
Hong Kong SAR \| JPY
Cash and restricted cash \| ¥				¥ 35,821
Hong Kong SAR \| EUR
Cash and restricted cash \| €		€ 146
US \| USD
Cash and restricted cash						10,271
Singapore \| USD
Cash and restricted cash						$ 97,757
Singapore \| SGD
Cash and restricted cash					$ 1,927

CASH AND RESTRICTED CASH (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH AND RESTRICTED CASH
Cash	¥ 16,259,457	¥ 5,810,938
Restricted cash - current assets	86,829	34,299
Restricted cash - non-current assets	146,643	128,025
Total cash and restricted cash shown in the consolidated statements of cash flows	¥ 16,492,929	¥ 5,973,262	¥ 2,284,748	¥ 1,947,600

CONTRACT BALANCES (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
CONTRACT BALANCES (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable, net
Accounts receivable	¥ 1,482,498	¥ 881,177
Less: allowance for doubtful accounts	(2,163)	(133)	¥ (241)
Accounts receivable, net	1,480,335	881,044
- Current portion	1,480,335	879,962
- Non-current portion	0	1,082
Movement of the allowance for doubtful accounts
Allowance made during the year	2,032	274	241
Write-off during the year		(382)
Foreign exchange impact	(2)
Deferred Revenue
Beginning balance	105,735
Increase	5,804
Closing balance	111,539	105,735
Deferred revenue expected to be recognized as revenue after one year	14,871	15,419
Revenue recognized from the opening deferred revenue balance	96,084	66,500	¥ 43,192
Accounts receivable \| Bank loans
Accounts receivable, net
Assets pledged	819,578	¥ 520,382
Accounts receivable \| Finance lease and other financing obligations
Accounts receivable, net
Assets pledged	¥ 128,353

CONTRACT BALANCES - Remaining performance obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 ¥ in Thousands	Dec. 31, 2020 CNY (¥)
Remaining performance obligations
Remaining performance obligations	¥ 2,261,990
Period over which remaining performance obligations are expected to be recognized as revenue	4 years

PROPERTY AND EQUIPMENT, NET (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
At cost:
Property and equipment, gross	¥ 28,464,290	¥ 18,564,786
Less: Accumulated depreciation	(4,127,504)	(2,580,320)
Property and equipment net excluding construction in process	24,336,786	15,984,466
Construction in progress	5,259,275	3,200,173
Property and equipment, net	29,596,061	19,184,639
Land
At cost:
Property and equipment, gross	808,651	855,310
Buildings
At cost:
Property and equipment, gross	9,552,953	5,964,048
Data center equipment
At cost:
Property and equipment, gross	10,694,057	5,567,606
Leasehold improvement
At cost:
Property and equipment, gross	7,307,207	6,111,733
Furniture and office equipment
At cost:
Property and equipment, gross	97,039	61,974
Vehicles
At cost:
Property and equipment, gross	¥ 4,383	¥ 4,115

PROPERTY AND EQUIPMENT, NET - Acquired under finance leases and other financing arrangement (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Carrying amounts
Finance leases, net	¥ 8,207,825	¥ 6,070,349
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance leases, net

PROPERTY AND EQUIPMENT, NET - Depreciation (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Depreciation expense
Depreciation of property and equipment	¥ 1,543,130	¥ 1,057,171	¥ 682,451
Cost of revenue
Depreciation expense
Depreciation of property and equipment	1,418,846	1,045,446	674,560
General and administrative expenses
Depreciation expense
Depreciation of property and equipment	120,604	10,448	7,319
Research and development expenses
Depreciation expense
Depreciation of property and equipment	¥ 3,680	¥ 1,277	¥ 572

PROPERTY AND EQUIPMENT, NET - Additional information (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
PROPERTY AND EQUIPMENT, NET
Property and equipment, net	¥ 29,596,061	¥ 19,184,639
Payables for purchase of property and equipment due beyond one year	139,162	231,458
Asset Pledged as Collateral [Member]
PROPERTY AND EQUIPMENT, NET
Property and equipment, net	¥ 3,497,447	¥ 2,493,872

INTANGIBLE ASSETS, NET (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
INTANGIBLE ASSETS, NET (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Intangible assets
Intangible assets, gross	¥ 967,882	¥ 553,322
Less: accumulated amortization	(182,560)	(158,694)
Intangible assets, net	785,322	394,628
Amortization of intangible assets	68,688	58,312	¥ 52,974
Estimated future amortization expense
2021	114,844
2022	114,844
2023	113,302
2024	106,443
2025	92,131
Thereafter	243,758
Customer relationships
Intangible assets
Intangible assets, gross	952,100	547,322
Licenses
Intangible assets
Intangible assets, gross	¥ 15,782	¥ 6,000

PREPAID LAND USE RIGHTS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
PREPAID LAND USE RIGHTS (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Prepaid land use rights	¥ 736,695	¥ 782,319
Less: Accumulated amortization	(58,505)	(35,132)
Prepaid land use rights, net	678,190	747,187
Amortization of prepaid land use rights	26,656	26,393	¥ 6,082
Asset Pledged as Collateral [Member]
Prepaid land use rights, net	¥ 678,190	¥ 741,032

BUSINESS COMBINATIONS - Movement of goodwill (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Movement of goodwill
Balance at the beginning of the year	¥ 1,905,840	¥ 1,751,970
Addition during the year	746,015	153,870
Measurement period adjustments	(55,462)
Balance at end of year	¥ 2,596,393	¥ 1,905,840

BUSINESS COMBINATIONS - Equity Interest acquired (Details) ¥ in Thousands							12 Months Ended
	Dec. 18, 2020 CNY (¥)	Nov. 17, 2020 CNY (¥)	Jun. 05, 2020 CNY (¥) item	Oct. 18, 2019 CNY (¥)	Jun. 01, 2018 CNY (¥)	May 02, 2018 CNY (¥)	Dec. 31, 2020 CNY (¥)	May 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
The identifiable assets acquired and liabilities assumed in the business combination
Gain from purchase price adjustment							¥ (55,154)
Recognized amounts of identifiable assets acquired and liabilities assumed:
Goodwill							2,596,393		¥ 1,905,840	¥ 1,751,970
Remaining consideration payable							888,693		362,032
Guangzhou 3
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration						¥ 247,937
Purchase price						262,244		¥ 207,310
Contingent consideration						245,244			118,336
Gain from purchase price adjustment							55,154
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash						(62)
Accounts receivable						(13,995)
Property and equipment						(780,312)
Identifiable intangible assets						(130,000)
Other assets						(43,039)
Accounts payable						471,532
Finance lease and other financing obligations, non-current						282,051
Short-term borrowings						47,580
Long-term borrowings						30,000
Deferred tax liabilities						26,503
Other liabilities						2,849
Total identifiable net assets						(106,893)
Goodwill						¥ 141,044
Guangzhou 3 \| Other payables
The identifiable assets acquired and liabilities assumed in the business combination
Contingent consideration							36,412		95,274
Guangzhou 3 \| Other long-term liabilities
The identifiable assets acquired and liabilities assumed in the business combination
Contingent consideration									¥ 23,062
Shanghai 11
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration					¥ 319,119
Purchase price					320,000
Contingent consideration					70,000
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash					(404)
Property and equipment					(233,405)
Identifiable intangible assets					(57,000)
Other assets					(94,647)
Accounts payable					91,136
Deferred tax liabilities					9,995
Other liabilities					5,377
Total identifiable net assets					(278,948)
Goodwill					¥ 40,171
Target Group Guangzhou 6
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration				¥ 423,075
Purchase price				431,727
Contingent consideration				243,736
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash				(12,091)
Property and equipment				(493,026)
Operating lease ROU assets				(9,168)
Identifiable intangible assets				(15,000)
Other assets				(44,549)
Accounts payable				118,486
Finance lease and other financing obligations, current				16,828
Operating lease liabilities, current				886
Finance lease and other financing obligations, non-current				157,366
Operating lease liabilities, non- current				8,282
Deferred tax liabilities				1,040
Other liabilities				1,741
Total identifiable net assets				(269,205)
Goodwill				¥ 153,870
Target Group Guangzhou 6 \| Other payables
The identifiable assets acquired and liabilities assumed in the business combination
Contingent consideration							225,920
Beijing 10, 11 and 12
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration			¥ 788,554
Purchase price			788,554
Contingent consideration			¥ 133,032
Number of data center projects \| item			3
Effective settlement of pre-existing relationships upon consolidation			¥ 34,477
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash			(2,349)
Accounts receivable			(83,134)
Property and equipment			(2,007,608)
Operating lease ROU assets			(94,821)
Identifiable intangible assets			(191,000)
Other assets			(142,629)
Accounts payable			756,907
Finance lease and other financing obligations, current			174,959
Operating lease liabilities, current			6,982
Finance lease and other financing obligations, non-current			1,062,114
Operating lease liabilities, non- current			92,360
Deferred tax liabilities			13,833
Other liabilities			39,378
Total identifiable net assets			(375,008)
Goodwill			448,023
Beijing 10, 11 and 12 \| As previously reported
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration			847,586
Contingent consideration			130,720
Effective settlement of pre-existing relationships upon consolidation			34,477
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash			(2,349)
Accounts receivable			(81,027)
Property and equipment			(1,971,432)
Operating lease ROU assets			(94,821)
Identifiable intangible assets			(191,000)
Other assets			(149,956)
Accounts payable			727,043
Finance lease and other financing obligations, current			171,979
Operating lease liabilities, current			6,092
Finance lease and other financing obligations, non-current			1,062,114
Operating lease liabilities, non- current			92,360
Deferred tax liabilities			13,833
Other liabilities			38,586
Total identifiable net assets			(378,578)
Goodwill			503,485
Beijing 10, 11 and 12 \| Adjustments
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration			(59,032)
Recognized amounts of identifiable assets acquired and liabilities assumed:
Accounts receivable			(2,107)
Property and equipment			(36,176)
Other assets			7,327
Accounts payable			29,864
Finance lease and other financing obligations, current			2,980
Operating lease liabilities, current			890
Other liabilities			792
Total identifiable net assets			3,570
Goodwill			¥ (55,462)
Beijing 10, 11 and 12 \| Other payables
The identifiable assets acquired and liabilities assumed in the business combination
Contingent consideration							55,094
Shanghai 19
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration		¥ 62,480
Purchase price		62,480
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		(2,001)
Property and equipment		(372,093)
Operating lease ROU assets		(215,230)
Identifiable intangible assets		(56,100)
Other assets		(18,354)
Accounts payable		360,381
Operating lease liabilities, current		2,676
Operating lease liabilities, non- current		186,532
Deferred tax liabilities		16,322
Other liabilities		69,122
Total identifiable net assets		(28,745)
Goodwill		¥ 33,735
Beijing 9
The identifiable assets acquired and liabilities assumed in the business combination
Fair value of consideration	¥ 793,043
Purchase price	816,969
Contingent consideration	463,496
Effective settlement of pre-existing relationships upon consolidation	(65,706)
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	(451)
Accounts receivable	(55,072)
Property and equipment	(403,556)
Operating lease ROU assets	(82,729)
Identifiable intangible assets	(202,500)
Other assets	(70,149)
Accounts payable	16,472
Finance lease and other financing obligations, current	8,028
Operating lease liabilities, current	6,568
Finance lease and other financing obligations, non-current	117,002
Operating lease liabilities, non- current	95,729
Deferred tax liabilities	44,965
Other liabilities	7,151
Total identifiable net assets	(518,542)
Goodwill	208,795
Beijing 9 \| Other payables
The identifiable assets acquired and liabilities assumed in the business combination
Contingent consideration							¥ 448,304
Beijing 9 \| Consideration not Expected to be paid
The identifiable assets acquired and liabilities assumed in the business combination
Purchase price	811,507
Contingent consideration	¥ 5,462

BUSINESS COMBINATIONS - Assets acquired notes (Details) - CNY (¥) ¥ in Thousands							2 Months Ended	7 Months Ended		8 Months Ended	12 Months Ended
	Dec. 18, 2020	Nov. 17, 2020	Jun. 05, 2020	Oct. 18, 2019	Jun. 01, 2018	May 02, 2018	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	May 31, 2020
Business Combination, Goodwill
Net revenue											¥ 5,738,972	¥ 4,122,405	¥ 2,792,077
Net (loss) income											¥ (669,214)	¥ (442,083)	¥ (430,268)
Guangzhou 3
Business Combination, Goodwill
Purchase price						¥ 262,244								¥ 207,310
Property and equipment						780,312
Identifiable intangible assets						130,000
Net revenue										¥ 85,298
Net (loss) income										¥ (11,727)
Guangzhou 3 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets						¥ 130,000
Estimated useful life (in years)						7 years
Guangzhou 3 \| Property and equipment under finance lease
Business Combination, Goodwill
Property and equipment						¥ 291,000
Shanghai 11
Business Combination, Goodwill
Purchase price					¥ 320,000
Property and equipment					233,405
Identifiable intangible assets					57,000
Net revenue									¥ 35,489
Net (loss) income									¥ (2,924)
Shanghai 11 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets					¥ 23,000
Estimated useful life (in years)					10 years
Shanghai 11 \| Favorable leases
Business Combination, Goodwill
Identifiable intangible assets					¥ 34,000
Estimated useful life (in years)					13 years 7 months 6 days
Target Group Guangzhou 6
Business Combination, Goodwill
Purchase price				¥ 431,727
Property and equipment				493,026
Identifiable intangible assets				15,000
Net revenue							¥ 0
Net (loss) income							¥ (8,816)
Target Group Guangzhou 6 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets				¥ 15,000
Estimated useful life (in years)				7 years 9 months 18 days
Target Group Guangzhou 6 \| Property and equipment under finance lease
Business Combination, Goodwill
Property and equipment				¥ 174,194
Beijing 10, 11 and 12
Business Combination, Goodwill
Purchase price			¥ 788,554
Effective settlement of pre-existing relationships upon consolidation			34,477
Property and equipment			2,007,608
Identifiable intangible assets			191,000
Net revenue								¥ 281,926
Net (loss) income								¥ 14,083
Beijing 10, 11 and 12 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets			¥ 191,000
Estimated useful life (in years)			7 years 7 months 6 days
Beijing 10, 11 and 12 \| Property and equipment under finance lease
Business Combination, Goodwill
Property and equipment			¥ 632,427
Shanghai 19
Business Combination, Goodwill
Purchase price		¥ 62,480
Property and equipment		372,093
Identifiable intangible assets		56,100
Shanghai 19 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets		¥ 56,100
Estimated useful life (in years)		12 years 1 month 6 days
Beijing 9
Business Combination, Goodwill
Purchase price	¥ 816,969
Effective settlement of pre-existing relationships upon consolidation	(65,706)
Property and equipment	403,556
Identifiable intangible assets	202,500
Beijing 9 \| Customer relationships
Business Combination, Goodwill
Identifiable intangible assets	¥ 202,500
Estimated useful life (in years)	6 years 6 months
Beijing 9 \| Property and equipment under finance lease
Business Combination, Goodwill
Property and equipment	¥ 101,113

LOANS AND BORROWINGS - Total loans and borrowings (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans and borrowings
Short-term borrowings	¥ 1,230,756	¥ 397,213
Current portion of long-term borrowings	922,634	740,524
Sub-total	2,153,390	1,137,737
Long-term borrowings, excluding current portion	10,566,746	8,028,473
Total loans and borrowings	¥ 12,720,136	¥ 9,166,210

LOANS AND BORROWINGS - Type of short-term borrowings (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Short-term borrowings by type
Unsecured short-term loans and borrowings	¥ 221,436	¥ 80,000
Secured short-term loans and borrowings	1,009,320	317,213
Short-term borrowings	¥ 1,230,756	¥ 397,213

LOANS AND BORROWINGS - Short-term borrowings secured (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Short-term borrowings
Weighted average interest rates of short-term borrowings	4.67%	5.64%
Accounts receivable
Short-term borrowings
Assets to secure short-term borrowings	¥ 76,547	¥ 11,535

LOANS AND BORROWINGS - Long-term borrowings (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Long-term borrowings by type
Unsecured long-term loans and borrowings	¥ 112,500	¥ 42,500
Secured long-term loans and borrowings	11,376,880	8,726,497
Long-term borrowings	¥ 11,489,380	¥ 8,768,997

LOANS AND BORROWINGS - Long-term borrowings secured (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans and Borrowings
Assets to secure long-term loans and borrowings	¥ 4,939,011	¥ 3,743,751
Weighted average interest rates of long-term borrowings	6.73%	7.40%
Accounts receivable
Loans and Borrowings
Assets to secure long-term loans and borrowings	¥ 743,031	¥ 508,847
Property and equipment, net
Loans and Borrowings
Assets to secure long-term loans and borrowings	2,918,670	2,493,872
Prepaid land use rights, net
Loans and Borrowings
Assets to secure long-term loans and borrowings	678,190	¥ 741,032
Operating lease ROU assets
Loans and Borrowings
Assets to secure long-term loans and borrowings	¥ 599,120

LOANS AND BORROWINGS - Aggregate maturities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Twelve months ending December 31,
2021	¥ 922,634
2022	1,585,344
2023	2,581,585
2024	2,020,680
2025	1,406,764
Thereafter	2,972,373
Long-term borrowings	¥ 11,489,380	¥ 8,768,997

LOANS AND BORROWINGS - Total working capital and project financing credit (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans and Borrowings
Outstanding loans (net of debt issuance costs)	¥ 1,230,756	¥ 397,213
Outstanding loans (net of debt issuance costs)	11,489,380	8,768,997
Debt issuance costs	226,085	¥ 273,822
Credit facilities
Loans and Borrowings
Total working capital and project financing credit facilities	23,421,419
Unused amount	10,505,516
Loan drew down	12,915,903
Credit facilities \| Short-term borrowing
Loans and Borrowings
Outstanding loans (net of debt issuance costs)	1,229,377
Debt issuance costs	1,211
Credit facilities \| Long-term borrowing
Loans and Borrowings
Outstanding loans (net of debt issuance costs)	11,489,380
Debt issuance costs	¥ 195,935
Minimum
Loans and Borrowings
Terms of secured loan agreements with various financial institutions for project development and working capital purpose	1 year
Maximum
Loans and Borrowings
Terms of secured loan agreements with various financial institutions for project development and working capital purpose	15 years

LOANS AND BORROWINGS - Particulars of secured long-term loans and borrowings (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)
Secured long-term loans and borrowings
Early repayment if STT Communications Ltd. ceases to directly or indirectly own, the percentage of equity interests of STT GDC Pte. Ltd.	50.10%	50.10%
Early repayment if STT GDC PTe. Ltd. ceases to own and control, the percentage of equity interest in the Company	25.00%	25.00%
Early repayment if STT GDC PTe. Ltd. ceases to own and control, directly or indirectly, the percentage of equity interest in the Company	25.00%	25.00%
Financial covenants, fails to repay any financial indebtedness in an aggregate amount	¥ 50,000	$ 4,500
The Company and GDS Investment
Secured long-term loans and borrowings
Early repayment requirement, cease control of certain affiliate, percentage	100.00%	100.00%
Management Holdco
Secured long-term loans and borrowings
Early repayment requirement, cease control of certain affiliate, percentage	100.00%	100.00%
GDS Beijing, GDS Suzhou, and Relevant Borrowing Subsidiaries
Secured long-term loans and borrowings
Early repayment if cease to own and control percentage of the equity interest in the borrowing subsidiaries	100.00%	100.00%

CONVERTIBLE BONDS PAYABLE (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands		12 Months Ended
	Jun. 05, 2018 USD ($) $ / shares	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)
CONVERTIBLE BONDS PAYABLE
Debt issuance costs		¥ 226,085			¥ 273,822
Accrued interests		65,390			¥ 43,776
Denominations for repurchase of Notes \| $				$ 1
Conversion of convertible bonds		65
Additional paid-in capital
CONVERTIBLE BONDS PAYABLE
Conversion of convertible bonds		65
Accrued expenses
CONVERTIBLE BONDS PAYABLE
Accrued interests		¥ 3,262
ADS
CONVERTIBLE BONDS PAYABLE
Principal amount \| $	$ 1
Conversion rate per US$1,000 principal amount	19.3865
Basis of issuance of shares for debt conversion (in dollar per share) \| $ / shares	$ 51.58
Convertible Bonds due 2025
CONVERTIBLE BONDS PAYABLE
Principal amount \| $	$ 300,000			$ 299,990
Debt issuance costs \| $	$ 8,948
Interest per annum (as a percent)	2.00%
Maximum principal amount convertible to ordinary shares (as a percent)	100.00%
Principal amount converted \| $			$ 10
Effective interest rate		2.65%		2.65%	2.65%
Convertible Bonds due 2025 \| Additional paid-in capital
CONVERTIBLE BONDS PAYABLE
Conversion of convertible bonds		¥ 65

ACCRUED EXPENSES AND OTHER PAYABLES (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ACCRUED EXPENSES AND OTHER PAYABLES
Accrued interest expenses	¥ 65,390	¥ 43,776
Accrued debt issuance costs and other financing costs	32,512	28,082
Income tax payable	102,683	93,307
Other tax payables	39,372	28,259
Consideration payables for acquisitions	888,693	362,032
Deferred government grants		6,003
Accrued payroll and welfare benefits	114,632	97,486
Accrued professional fees	15,281	41,630
Accrued data center outsourcing service fees	1,928	17,989
Amount due to related parties	15,360	11,988
Amount due to a financial institution	83,305	34,190
Other accrued operating expenses	27,152	38,020
Other payables	9,673	15,121
Total accrued expenses and other payables	¥ 1,395,981	¥ 817,883

LEASES - Lease arrangements (Details) ¥ in Thousands	12 Months Ended
LEASES - Lease arrangements (Details) ¥ in Thousands	Dec. 31, 2019 CNY (¥) lease	Dec. 31, 2020 CNY (¥)
Lease arrangements
Finance lease liabilities	¥ 4,663,508	¥ 6,580,102
Operating lease liabilities	¥ 765,137	1,629,153
Data center buildings and land leases
Lease arrangements
Finance lease liabilities		1,634,419
Operating lease liabilities		¥ 768,613
Hebei equipment lease
Lease arrangements
Number of leases agreements with third-party lessor \| lease	2

LEASES - Components of Lease Expense (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Components of lease cost
Finance lease cost:- Amortization of right-of-use assets	¥ 423,075	¥ 222,101
Finance lease cost:- Interest on lease liabilities	465,692	299,511
Operating lease cost	195,869	100,469
Short-term lease cost	19,987	5,004
Variable lease cost	(55,599)
Total lease cost	1,049,024	¥ 627,085
Lease concessions granted	55,188
Variable lease cost (credit) recognized for certain finance leases with floating interest rate	¥ 411

LEASES - Supplemental Cash Flow Information Related to Leases (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
LEASES
Cash paid for amounts included in measurement of lease liabilities:- Operating cash flows from finance leases	¥ (389,679)	¥ (248,417)
Cash paid for amounts included in measurement of lease liabilities:- Operating cash flows from operating leases	(141,480)	(116,295)
Cash paid for amounts included in measurement of lease liabilities:- Financing cash flows from finance leases	(198,234)	(302,679)
Non-cash information on lease liabilities arising from obtaining ROU assets- Finance leases	1,099,698	708,757
Non-cash information on lease liabilities arising from obtaining ROU assets- Operating leases	553,154	333,775
Cash paid for purchase of land use rights and initial direct costs	¥ 744,761	¥ 800,431

LEASES - Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Leases (Details)	Dec. 31, 2020	Dec. 31, 2019
LEASES
Weighted average remaining lease term:- Finance leases	13 years 8 months 12 days	15 years 2 months 12 days
Weighted average remaining lease term:- Operating leases	15 years 7 months 6 days	15 years 7 months 6 days
Weighted average discount rate:- Finance leases	7.00%	6.91%
Weighted average discount rate:- Operating leases	6.23%	6.35%

LEASES - Maturities of Lease Liabilities (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finance lease obligations
Within 1 year	¥ 577,933	¥ 502,261
After 1 year but within 2 years	600,348	399,200
After 2 years but within 3 years	620,461	399,843
After 3 years but within 4 years	650,855	414,126
After 4 years but within 5 years	681,090	429,902
After 5 years	7,792,794	5,905,408
Total undiscounted lease payments	10,923,481	8,050,740
Less: total future interest	(4,343,379)	(3,387,232)
Present value of lease obligations	6,580,102	4,663,508
Other financing obligations
Within 1 year	225,350	32,232
After 1 year but within 2 years	354,625	37,462
After 2 years but within 3 years	356,204	72,845
After 3 years but within 4 years	377,930	69,248
After 4 years but within 5 years	361,073	65,688
After 5 years	723,755	163,480
Total undiscounted lease payments	2,398,937	440,955
Less: total future interest	(578,822)	(121,742)
Less: estimated construction costs	(47,924)	(9,127)
Present value of lease obligations	1,772,191	310,086
Total of finance lease and other financing obligations
Within 1 year	803,283	534,493
After 1 year but within 2 years	954,973	436,662
After 2 years but within 3 years	976,665	472,688
After 3 years but within 4 years	1,028,785	483,374
After 4 years but within 5 years	1,042,163	495,590
After 5 years	8,516,549	6,068,888
Total undiscounted lease payments	13,322,418	8,491,695
Less: total future interest	(4,922,201)	(3,508,974)
Less: estimated construction costs	(47,924)	(9,127)
Present value of total of finance lease and other financing obligations	8,352,293	4,973,594
Finance lease and other financing obligations, current	254,412	222,473
Finance lease and other financing obligations, non-current	8,097,881	4,751,121
Operating lease obligations
Within 1 year	180,447	97,993
After 1 year but within 2 years	190,243	72,046
After 2 years but within 3 years	149,300	64,151
After 3 years but within 4 years	151,545	64,086
After 4 years but within 5 years	151,063	64,547
After 5 years	1,839,384	880,855
Total undiscounted lease payments	2,661,982	1,243,678
Less: total future interest	(1,032,829)	(478,541)
Operating lease liabilities	1,629,153	765,137
Operating lease liabilities, current	86,258	55,139
Operating lease liabilities, non-current	1,542,895	709,998
Total
Within 1 year	983,730	632,486
After 1 year but within 2 years	1,145,216	508,708
After 2 years but within 3 years	1,125,965	536,839
After 3 years but within 4 years	1,180,330	547,460
After 4 years but within 5 years	1,193,226	560,137
After 5 years	10,355,933	6,949,743
Total undiscounted lease payments	15,984,400	9,735,373
Less: total future interest	(5,955,030)	(3,987,515)
Less: estimated construction costs	(47,924)	(9,127)
Present value of lease and other financing obligations	9,981,446	5,738,731
Current Portion	340,670	277,612
Non-current portion	9,640,776	¥ 5,461,119
Other disclosures
Total future lease payments for additional leases that have not yet commenced, primarily for data center buildings	¥ 279,376
Data center building leases \| Minimum
Other disclosures
Lease terms	1 year
Data center building leases \| Maximum
Other disclosures
Lease terms	20 years

LEASES - Lease and other financing obligations secured by assets (Details) ¥ in Thousands	Dec. 31, 2020 CNY (¥)
Lessee, Lease, Description [Line Items]
Assets to secure lease and other financing obligations	¥ 707,130
Accounts receivable
Lessee, Lease, Description [Line Items]
Assets to secure lease and other financing obligations	128,353
Property and equipment, net
Lessee, Lease, Description [Line Items]
Assets to secure lease and other financing obligations	¥ 578,777

OTHER LONG-TERM LIABILITIES (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other long-term liabilities
Consideration payable for acquisitions	¥ 97,457	¥ 23,062
Payables for purchase of property and equipment	139,162	231,459
Deferred revenue - non-current (Note 4)	14,871	15,419
Deferred government grants	6,196	6,507
Interest rate swap contracts (Note 16)		10,408
Asset retirement obligations	76,909	52,441
Others	14,662	6,241
Total	¥ 349,257	¥ 345,537

REDEEMABLE PREFERRED SHARES - Movement of redeemable preferred shares (Details) ¥ in Thousands, $ / shares in Thousands, $ in Thousands					12 Months Ended
	Dec. 10, 2019 shares	Mar. 27, 2019 USD ($) $ / shares shares	Mar. 19, 2019 shares	Jan. 26, 2018 shares	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Movement of the redeemable preferred shares
Balance at beginning of year					¥ 1,061,981
Balance at end of year					980,910	¥ 1,061,981
Redeemable preferred shares
Movement of the redeemable preferred shares
Balance at beginning of year					1,061,981
Issuance of redeemable preferred shares						989,349
Change in redemption value of redeemable preferred shares						17,760
Accrual of redeemable preferred shares dividends					52,709	40,344
Settlement of redeemable preferred shares dividends					(65,489)	(25,014)
Foreign exchange impact					(68,291)	39,542
Balance at end of year					¥ 980,910	¥ 1,061,981
Redeemable preferred shares \| PA Goldilocks Limited
Movement of the redeemable preferred shares
Issuance of shares (in shares) \| shares		150,000
Share price \| $ / shares		$ 1
Issuance of redeemable preferred shares \| $		$ 150,000
ADS
Movement of the redeemable preferred shares
Issuance of shares (in shares) \| shares	6,318,680		13,731,343	8,000,000

REDEEMABLE PREFERRED SHARES - Key terms of the convertible preferred shares (Details) - 12 months ended Dec. 31, 2020 $ / shares in Units, ¥ in Thousands, $ in Thousands	CNY (¥) D	USD ($) D $ / shares
REDEEMABLE PREFERRED SHARES
Issuance of ordinary shares in exchange of bonds payable \| ¥	¥ 65
Redeemable preferred shares
REDEEMABLE PREFERRED SHARES
Dividend rate per annum	5.00%	5.00%
Increase dividend rate per annum	7.00%	7.00%
Increase in dividend rate each quarter thereafter if the Company has not redeemed all of the preferred shares outstanding as of the eighth anniversary of the Issue Date	0.50%	0.50%
Number of trading days \| D	20	20
Consecutive trading days \| D	30	30
Aggregate value of preferred shares \| $		$ 10,000
Minimum percentage of the preferred shares issued as of the Issue Date, right to require the Company to sell all or a portion of its business and/or to conduct other fundraising or refinancing activities	90.00%	90.00%
Issuance costs \| $		$ 2,646
Minimum percentage of outstanding preferred shares' written consent or affirmative vote needed for certain actions		75.00%
ADS
REDEEMABLE PREFERRED SHARES
Volume-weighted average price ("VWAP") per ADS \| $ / shares		$ 53.40
Conversion price \| $ / shares		$ 35.60

REDEEMABLE NON-CONTROLLING INTERESTS (Details)	1 Months Ended
REDEEMABLE NON-CONTROLLING INTERESTS (Details)	Jul. 31, 2020 item
BJ13
Redeemable Noncontrolling Interest [Line Items]
Controlling interest owned (as a percent)	58.00%
Number of data center projects	2
CPE Fund \| JV
Redeemable Noncontrolling Interest [Line Items]
Percent of equity interest to acquire	42.00%
CPE Fund \| JV
Redeemable Noncontrolling Interest [Line Items]
Non-controlling interest owned (as a percent)	42.00%

REDEEMABLE NON-CONTROLLING INTERESTS - Redeemable non-controlling interest (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
REDEEMABLE PREFERRED SHARES
Capital contribution from redeemable non-controlling shareholder	¥ 105,000
Net loss attributable to redeemable non-controlling interests	(2,807)
Accretion to redemption value of redeemable non-controlling interests	18,627
Redeemable non-controlling interests	¥ 120,820

DERIVATIVE FINANCIAL INSTRUMENTS - Balance sheet location (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2019 USD ($)
DERIVATIVE FINANCIAL INSTRUMENTS
Interest rate swap contracts		¥ 10,408
Interest rate swap contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative, Notional Amount \| $	$ 0		$ 118,500
Interest rate swap contracts \| Not designated as hedging instrument \| Accrued expenses and other payables
DERIVATIVE FINANCIAL INSTRUMENTS
Interest rate swap contracts		351
Interest rate swap contracts \| Not designated as hedging instrument \| Other long-term liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Interest rate swap contracts		¥ 10,408

DERIVATIVE FINANCIAL INSTRUMENTS - Statement of operations location (Details) - Interest rate swap contracts - Not designated as hedging instrument - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
Interest rate swap contracts	¥ (9,775)	¥ (12,258)	¥ 81
Interest expenses
DERIVATIVE FINANCIAL INSTRUMENTS
Realized loss	(19,814)	(1,652)	(75)
Unrealized (loss) gain	¥ 10,039	¥ (10,606)	¥ 156

FAIR VALUE MEASUREMENT (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
FAIR VALUE MEASUREMENT
Convertible bonds payable fair value	¥ 3,683,816	¥ 2,448,646
Fair Value, Measurements, Recurring
FAIR VALUE MEASUREMENT
Liability measured at fair value		¥ 10,759

ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands										1 Months Ended		12 Months Ended
	Nov. 06, 2020 CNY (¥) shares	Nov. 02, 2020 $ / shares shares	Dec. 10, 2019 CNY (¥) shares	Dec. 10, 2019 USD ($) shares	Mar. 19, 2019 CNY (¥) shares	Mar. 19, 2019 USD ($) shares	Jan. 29, 2018 CNY (¥) shares	Jan. 29, 2018 USD ($) shares	Jan. 26, 2018 $ / shares shares	Jun. 30, 2020 CNY (¥) item shares	Jun. 30, 2020 USD ($) item $ / shares shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2019 CNY (¥) shares	Dec. 31, 2018 CNY (¥)
Ordinary shares
Issuance of ordinary shares \| ¥												¥ 15,974,517	¥ 4,934,126	¥ 1,283,308
Proceeds from offering, net of underwriting discounts and commissions and other issuance costs	¥ 12,441,232		¥ 1,951,884	$ 277,256	¥ 2,982,242	$ 444,699	¥ 1,283,308	$ 202,696
IPO
Ordinary shares
Share price \| $ / shares		$ 80.88
Private Placement
Ordinary shares
Price per share (in USD/share) \| $ / shares											$ 8.125
Proceeds from offering, net of underwriting discounts and commissions and other issuance costs										¥ 3,533,285	$ 500,784
Number of investors \| item										2	2
ADS
Ordinary shares
Ordinary shares issued (in shares)			6,318,680	6,318,680	13,731,343	13,731,343			8,000,000
ADS \| IPO
Ordinary shares
Ordinary shares issued (in shares)		20,000,000
ADS \| Over-Allotment Option
Ordinary shares
Ordinary shares issued (in shares)	3,000,000		824,175	824,175	1,791,044	1,791,044	225,000	225,000
ADS \| Private Placement
Ordinary shares
Share price \| $ / shares											$ 65
Class A
Ordinary shares
Ordinary shares issued (in shares)			50,549,440	50,549,440	109,850,744	109,850,744			64,000,000
Common stock, outstanding shares (in shares)												1,427,590,059	1,148,842,379
Class A \| IPO
Ordinary shares
Ordinary shares issued (in shares)		160,000,000
Class A \| Over-Allotment Option
Ordinary shares
Ordinary shares issued (in shares)	24,000,000		6,593,400	6,593,400	14,328,352	14,328,352	1,800,000	1,800,000
Class A \| Private Placement
Ordinary shares
Ordinary shares issued (in shares)										62,153,848	62,153,848
Class B
Ordinary shares
Common stock, outstanding shares (in shares)												67,590,336	67,590,336
SBCVC \| ADS
Ordinary shares
Number of shares sold									3,000,000
Share price \| $ / shares									$ 26.00
SBCVC \| ADS \| Over-Allotment Option
Ordinary shares
Number of shares sold							1,425,000	1,425,000
SBCVC \| Class A
Ordinary shares
Number of shares sold									24,000,000
SBCVC \| Class A \| Over-Allotment Option
Ordinary shares
Number of shares sold							11,400,000	11,400,000
Hillhouse \| Class A \| Private Placement
Ordinary shares
Issuance of ordinary shares \| $											$ 400,000
STT GDC \| Class A \| Private Placement
Ordinary shares
Issuance of ordinary shares \| $											$ 105,000

SHARE-BASED COMPENSATION - Plans and Grants (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2018 CNY (¥) ¥ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Aug. 31, 2016 shares	Dec. 31, 2018 ¥ / shares shares	Jul. 31, 2014 shares
SHARE-BASED COMPENSATION
Share options granted (in shares)				500,000
Exercise price (in USD or CNY per share) \| ¥ / shares				¥ 5.0
The 2014 Plan
SHARE-BASED COMPENSATION
Total number shares which may be issued					29,240,000
The 2014 Plan \| A Consultant granted 500,000 options
SHARE-BASED COMPENSATION
Share options granted (in shares)	500,000	500,000
Exercise price (in USD or CNY per share) \| (per share)	¥ 5.0	$ 0.7792
Contractual term	5 years	5 years
Fair value of options granted and vested	¥ 16,073	$ 2,429
The 2016 Plan
SHARE-BASED COMPENSATION
Authorized shares, automatic increment trigger (as a percent)			1.50%
The 2016 Plan \| Ordinary Shares
SHARE-BASED COMPENSATION
Total number shares which may be issued			56,707,560
Authorized shares, maximum automatic approval (as a percent)			3.00%

SHARE-BASED COMPENSATION - Stock Option Activity (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of options
Outstanding, beginning (in shares)	14,629,096	24,779,432	28,087,236
Granted (in shares)			500,000
Exercised (in shares)	(14,222,096)	(10,150,336)	(3,614,464)
Forfeited (in shares)			(193,340)
Outstanding, ending (in shares)	407,000	14,629,096	24,779,432
Intrinsic value of options exercised	¥ 633,606	¥ 266,863	¥ 77,917
Weighted average exercise price
Outstanding, beginning (in RMB per share)	¥ 5.4	¥ 5.3	¥ 5.1
Granted (in RMB per share)			5.0
Exercised (in RMB per share)	5.5	5.6	5.2
Forfeited (in RMB per share)			5.0
Outstanding, ending (in RMB per share)	5.1	5.4	5.3
Weighted average grant-date fair value per option
Outstanding, beginning (in RMB per share)	1.7	2.2	3.2
Granted (in RMB per share)			31.2
Exercised (in RMB per share)	1.6	3.5	4.5
Forfeited (in RMB per share)			6.2
Outstanding, ending (in RMB per share)	¥ 1.6	¥ 1.7	¥ 2.2
Options vested and expected to be vested
Number of options	407,000
Weighted average exercise price (in RMB per share)	¥ 5.1
Weighted average grant-date fair value per option (in RMB per share)	¥ 1.6
Stock options outstanding and stock options exercisable
Number of shares	407,000
Weighted average remaining contractual life (years)	3 months 18 days
Weighted average exercise price (in RMB per share)	¥ 5.1
Other disclosures
Aggregate intrinsic value of options outstanding and exercisable	¥ 29,015
Employee
Other disclosures
Unvested employee or non-employee stock options (in shares)	0	0
Nonemployee
Other disclosures
Unvested employee or non-employee stock options (in shares)	0	0

SHARE-BASED COMPENSATION - Settlement of Liability Classified Restricted Shares (Details) - CNY (¥) ¥ in Thousands	8 Months Ended	9 Months Ended		12 Months Ended
	Oct. 31, 2020	Nov. 30, 2019	Nov. 30, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SHARE-BASED COMPENSATION
Settlement of liability-classified restricted share award				¥ 10,089	¥ 7,984	¥ 6,357
Compensation expense				¥ 333,686	¥ 189,756	¥ 105,877
Directors
SHARE-BASED COMPENSATION
Compensation expense	¥ 0
Restricted shares
SHARE-BASED COMPENSATION
Granted (in shares)				11,710,848	14,551,472	13,202,512
Compensation expense				¥ 333,686	¥ 189,447	¥ 89,804
Restricted shares \| Directors
SHARE-BASED COMPENSATION
Granted (in shares)	190,536	237,312	260,560
Settlement of liability-classified restricted share award	¥ 10,089	¥ 7,984	¥ 6,357

SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	1 Months Ended			12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Jul. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted average grant-date fair value per share (RMB)
Total share based compensation expense				¥ 333,686	¥ 189,756	¥ 105,877
Restricted shares
Number of Shares
Outstanding, beginning				33,357,296	29,510,504	24,525,620
Granted (in shares)				11,710,848	14,551,472	13,202,512
Vested (in shares)				(12,684,640)	(9,122,432)	(7,326,620)
Forfeited (in shares)				(1,364,736)	(1,582,248)	(891,008)
Outstanding, end				31,018,768	33,357,296	29,510,504
Weighted average grant-date fair value per share (RMB)
Outstanding, beginning				¥ 22.4	¥ 9.3	¥ 5.3
Granted (in RMB per share)				66.7	34.2	14.5
Vested (in RMB per share)				14.1	9.3	6.0
Forfeited (in RMB per share)				25.1	10.7	5.9
Outstanding, end				¥ 42.4	¥ 22.4	¥ 9.3
Total unrecognized compensation expense				¥ 574,564
Total share based compensation expense				¥ 333,686	¥ 189,447	¥ 89,804
Weighted average period over which unrecognized compensation expense is expected to be recognized				1 year 8 months 23 days
Intrinsic value of restricted shares vested				¥ 827,396	¥ 311,923	¥ 160,264
Intrinsic value of unvested restricted shares				¥ 2,369,023
Restricted shares \| Employees, officers and directors
Number of Shares
Granted (in shares)	11,520,312	14,314,160	12,941,952

SHARE-BASED COMPENSATION - Fair Value Assumptions - Restricted Shares (Details) - Restricted shares	1 Months Ended
	Aug. 31, 2020 $ / shares	Aug. 31, 2019 $ / shares	Aug. 31, 2018 $ / shares	Aug. 31, 2020 ¥ / shares	Aug. 31, 2019 ¥ / shares	Aug. 31, 2018 ¥ / shares
Fair value assumptions
Volatility (as a percent)	59.23%	63.22%	71.85%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Share price at grant date \| (per share)	$ 10.1475	$ 5.02375	$ 3.125	¥ 70.5	¥ 34.6	¥ 21.3
Minimum
Fair value assumptions
Risk-free rate of return (as a percent)	0.14%	1.67%	2.047%
Expected term	1 year	1 year	1 year
Maximum
Fair value assumptions
Risk-free rate of return (as a percent)	0.19%	1.88%	2.418%
Expected term	3 years	3 years	3 years

SHARE-BASED COMPENSATION - Expenses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SHARE-BASED COMPENSATION
Compensation expense	¥ 333,686	¥ 189,756	¥ 105,877
Cost of revenue
SHARE-BASED COMPENSATION
Compensation expense	89,943	46,007	18,008
Selling and marketing expenses
SHARE-BASED COMPENSATION
Compensation expense	54,204	39,436	25,213
General and administrative expenses
SHARE-BASED COMPENSATION
Compensation expense	184,943	101,949	61,707
Research and development expenses
SHARE-BASED COMPENSATION
Compensation expense	¥ 4,596	¥ 2,364	¥ 949

REVENUE (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
REVENUE (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue recognition
Net revenue	¥ 5,738,972	¥ 4,122,405	¥ 2,792,077
Service revenue
Revenue recognition
Net revenue	5,716,868	4,094,571	2,759,490
Colocation services
Revenue recognition
Net revenue	4,710,923	3,261,745	2,104,259
Managed service and others
Revenue recognition
Net revenue	1,005,945	832,826	655,231
Equipment Sales
Revenue recognition
Net revenue	¥ 22,104	¥ 27,834	¥ 32,587

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

INCOME TAX (Details) $ in Millions		12 Months Ended
INCOME TAX (Details) $ in Millions	Jan. 01, 2018 HKD ($) item	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAX
Income tax rate (as a percent)			25.00%	25.00%	25.00%
PRC
INCOME TAX
Income tax rate (as a percent)			25.00%
Hong Kong SAR
INCOME TAX
Income tax rate (as a percent)	16.50%		16.50%
Amount of first assessable profits earned will be taxed at half the current tax rate \| $	$ 2
Tax rate for first HK$2 million of assessable profits earned	(8.25%)
Number of entities to be nominated and benefit from the progressive rates \| item	1
Singapore
INCOME TAX
Income tax rate (as a percent)			17.00%
High and New Technology Enterprise \| PRC
INCOME TAX
Income tax rate (as a percent)		15.00%	15.00%	15.00%

INCOME TAX - By tax Jurisdictions (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss (income) before income taxes:
PRC	¥ (19,765)	¥ 68,080	¥ 237,232
Other jurisdictions	568,201	358,353	202,427
Total loss before income taxes	548,436	426,433	439,659
Current tax expenses:
PRC	210,503	65,819	27,206
Other jurisdictions	14	3
Total current tax expenses	210,517	65,822	27,206
Deferred tax benefits:
PRC	(89,739)	(50,172)	(36,597)
Total deferred tax benefits	(89,739)	(50,172)	(36,597)
Total income taxes (benefits) expenses	¥ 120,778	¥ 15,650	¥ (9,391)

INCOME TAX - Reconciliation of statutory tax rate and effective tax rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of the differences between actual income tax expense and the PRC statutory tax rate
PRC enterprise income tax rate	25.00%	25.00%	25.00%
Non-PRC resident enterprises not subject to income tax	(27.60%)	(21.40%)	(9.20%)
Tax differential for entities in non-PRC jurisdiction	(1.30%)	(1.40%)	(1.20%)
Preferential tax rate	(0.30%)	0.00%	0.00%
Tax effect of current year permanent differences	1.00%	1.50%	(1.30%)
Expiration of unused net operating losses	(1.30%)	(1.40%)	(10.10%)
Non-taxable income	2.50%	0.00%	0.00%
Change in valuation allowance	(21.30%)	(8.70%)	(1.00%)
Return to provision adjustment	1.30%	2.70%	(0.10%)
Effective tax rate (as a percent)	(22.00%)	(3.70%)	2.10%

INCOME TAX - Deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for accounts receivable	¥ 1,959	¥ 12
Government subsidy	1,549	3,127
Accrued expenses	24,597	27,601
Asset retirement obligation	19,227	13,110
Net operating losses carry forwards	386,999	267,159
Total gross deferred tax assets	434,331	311,009
Valuation allowance on deferred tax assets	(328,821)	(205,976)	¥ (155,852)	¥ (152,241)
Deferred tax assets, net of valuation allowance	105,510	105,033
Deferred tax liabilities:
Property and equipment	(154,480)	(171,656)
Intangible assets	(195,093)	(97,102)
Prepaid land use rights	(1,572)	(1,612)
Leases	(70,284)	(9,568)
Accounts receivable		(4,836)
Total deferred tax liabilities	(421,429)	(284,774)
Net deferred tax liabilities	(315,919)	(179,741)
Analysis as:
Deferred tax assets	146,088	72,931
Deferred tax liabilities	(462,007)	(252,672)
Net deferred tax liabilities	¥ (315,919)	¥ (179,741)

INCOME TAX - Movement of the valuation allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Movement of the valuation allowance
Balance at the beginning of the year	¥ 205,976	¥ 155,852	¥ 152,241
Increase during the year	122,845	50,124	3,611
Balance at the end of the year	¥ 328,821	¥ 205,976	¥ 155,852

INCOME TAX - Net operating losses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating losses carry forwards
Deferred tax assets	¥ 146,088	¥ 72,931
Valuation allowance on deferred tax assets	328,821	¥ 205,976	¥ 155,852	¥ 152,241
Deferred tax assets for net operating losses	386,999
Valuation allowance on net operating losses carryforwards	¥ 251,868
PRC enterprise income tax rate	25.00%	25.00%	25.00%
State administration of taxation, China
Operating losses carry forwards
Net operating losses carry forwards	¥ 1,421,451
Net operating losses carry forwards expire if unused by December 31, 2021	42,278
Net operating losses carry forwards expire if unused by December 31, 2022	97,573
Net operating losses carry forwards expire if unused by December 31, 2023	299,356
Net operating losses carry forwards expire if unused by December 31, 2024	375,780
Net operating losses carry forwards expire if unused by December 31, 2025	¥ 606,464
PRC enterprise income tax rate	25.00%
Withholding tax for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor (as a percent)	10.00%

DISTRIBUTION OF PROFIT (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
DISTRIBUTION OF PROFIT (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
DISTRIBUTION OF PROFIT
Percentage of after-tax profits required to be appropriated to general reserve fund	10.00%
General reserve as a percentage of registered capital up to which after-tax profit of PRC subsidiaries and VIEs could discontinue allocations to the general reserve fund	50.00%
Aggregate amounts of capital and statutory reserves restricted	¥ 13,109,939	¥ 7,367,536
Amount of non-distributable general reserve fund	¥ 55,333	¥ 15,712

LOSS PER ORDINARY SHARE - Computation of basic and diluted loss per share (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Computation of basic and diluted loss per share
Net loss	¥ (669,214)	¥ (442,083)	¥ (430,268)
Net loss attributable to redeemable non-controlling interests	2,807
Accretion to redemption value of redeemable non-controlling interests	(18,627)
Change in redemption value of redeemable preferred shares		(17,760)
Cumulative dividend on redeemable preferred shares	(52,709)	(40,344)
Net loss available to GDS Holdings Limited ordinary shareholders	¥ (737,743)	¥ (500,187)	¥ (430,268)
Weighted average number of ordinary shares outstanding-basic and diluted	1,253,559,523	1,102,953,366	990,255,959
Loss per ordinary share - basic and diluted	¥ (0.59)	¥ (0.45)	¥ (0.43)
Proceeds from issuance of ordinary shares	¥ 15,974,517	¥ 4,934,126	¥ 1,283,308
Ordinary Shares
Computation of basic and diluted loss per share
Shares issued to depository bank (in shares)	32,592,288	48,962,896	0
Proceeds from issuance of ordinary shares	¥ 0	¥ 0	¥ 0

LOSS PER ORDINARY SHARE - Excluded from the computation of diluted loss per share (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Antidilutive securities excluded from computation of earnings per share
Total	77,951,817	94,513,992	100,817,536
Share options/restricted shares
Antidilutive securities excluded from computation of earnings per share
Total	31,425,768	47,986,392	54,289,936
Convertible bonds payable
Antidilutive securities excluded from computation of earnings per share
Total	46,526,049	46,527,600	46,527,600

SEGMENT INFORMATION (Details) ¥ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) ¥ in Thousands	Dec. 31, 2020 CNY (¥) segment	Dec. 31, 2019 CNY (¥)
Number of operating segments \| segment	1
Hong Kong SAR
Long-lived assets \| ¥	¥ 1,627,832	¥ 1,605,892

MAJOR CUSTOMERS (Details) ¥ in Thousands	12 Months Ended
MAJOR CUSTOMERS (Details) ¥ in Thousands	Dec. 31, 2020 CNY (¥) customer	Dec. 31, 2019 CNY (¥) customer	Dec. 31, 2018 CNY (¥) customer
Revenue
Revenue	¥ 5,738,972	¥ 4,122,405	¥ 2,792,077
Revenues \| Customer concentration
Revenue
Number of contracting customers generated over 10% of the Company's total revenues \| customer	3	3	3
Revenues \| Customer concentration \| Customer A
Revenue
Revenue	¥ 1,347,165	¥ 1,010,794	¥ 563,698
Revenues \| Customer concentration \| Customer B
Revenue
Revenue	847,620	712,780	490,523
Revenues \| Customer concentration \| Customer C
Revenue
Revenue	¥ 674,621	¥ 535,990	¥ 376,881

- Definition

+ References

+ Details

COMMITMENTS AND CONTINGENCIES - Capital commitments (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020
Litigation contingencies
Unpaid legal cost and other related costs in a consolidated class action lawsuit	¥ 5,748
Capital additional purchase commitments
Capital commitments
Capital commitments outstanding not provided for in the financial statements, Contracted for	2,722,084	¥ 3,949,623
Purchase of land use rights
Capital commitments
Capital commitments outstanding not provided for in the financial statements, Contracted for	¥ 4,500	¥ 20,650

RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Amount due to related parties	¥ 15,360	¥ 11,988
STT Singapore DC Pte. Ltd.
Related Party Transactions
Commission income	553	624
Amount due to related parties	7,938	5,350
Billed on behalf of related parties	40,503	55,392
STT DEFU 2 Pte. Ltd.
Related Party Transactions
Commission income	485	332
Amount due to related parties	7,422	6,638
Billed on behalf of related parties	40,256	43,069
Affiliated Entity
Related Party Transactions
Commission income	¥ 1,038	¥ 956

PARENT ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash	¥ 16,259,457	¥ 5,810,938
Prepaid expenses	163,986	80,913
Other current assets	172,579	148,603
Total current assets	18,318,806	7,084,709
Restricted cash	146,643	128,025
Other non-current assets	486,071	289,410
Total assets	57,258,795	31,492,531
Current liabilities
Accounts payable	3,657,112	1,675,966
Accrued expenses and other payables	1,395,981	817,883
Total current liabilities	7,643,821	3,999,514
Long-term borrowings	10,566,746	8,028,473
Convertible bonds payable	1,928,466	2,049,654
Other long-term liabilities	349,257	345,537
Total liabilities	30,591,073	20,136,969
Mezzanine Equity
Redeemable preferred shares (US$0.00005 par value; 150,000 shares authorized, issued and outstanding as of December 31, 2019 and December 31, 2020, respectively; Redemption value of RMB1,061,981 and RMB980,910 as of December 31, 2019 and December 31, 2020, respectively; Liquidation value of RMB1,537,636 and RMB2,576,578 as of December 31, 2019 and December 31, 2020, respectively)	980,910	1,061,981
Total mezzanine equity	1,101,730	1,061,981
Shareholders' Equity
Ordinary shares (US$0.00005 par value; 2,002,000,000 authorized; 1,148,842,379 and 1,427,590,059 Class A ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively; 67,590,336 Class B ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively)	507	412
Additional paid-in capital	28,728,717	12,403,043
Accumulated other comprehensive loss	(439,635)	(52,684)
Accumulated deficit	(2,723,597)	(2,057,190)
Total shareholders' equity	25,565,992	10,293,581	¥ 5,521,925	¥ 4,475,512
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders' equity	57,258,795	31,492,531
Parent Company \| Reportable Legal Entities
Current assets
Cash	12,312,249	2,560,388
Prepaid expenses	39,187	7,048
Other current assets	23,136	21,537
Total current assets	12,374,572	2,588,973
Restricted cash		27,225
Investment and loans to subsidiaries	16,146,058	11,539,590
Other non-current assets	3,616	4,954
Total assets	28,524,246	14,160,742
Current liabilities
Accounts payable	12,451	7,168
Accrued expenses and other payables	29,790	49,546
Due to subsidiaries	868	928
Total current liabilities	43,109	57,642
Long-term borrowings		681,235
Convertible bonds payable	1,928,466	2,049,654
Other long-term liabilities	5,769	16,649
Total liabilities	1,977,344	2,805,180
Mezzanine Equity
Redeemable preferred shares (US$0.00005 par value; 150,000 shares authorized, issued and outstanding as of December 31, 2019 and December 31, 2020, respectively; Redemption value of RMB1,061,981 and RMB980,910 as of December 31, 2019 and December 31, 2020, respectively; Liquidation value of RMB1,537,636 and RMB2,576,578 as of December 31, 2019 and December 31, 2020, respectively)	980,910	1,061,981
Total mezzanine equity	980,910	1,061,981
Shareholders' Equity
Ordinary shares (US$0.00005 par value; 2,002,000,000 authorized; 1,148,842,379 and 1,427,590,059 Class A ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively; 67,590,336 Class B ordinary shares issued and outstanding as of December 31, 2019 and 2020, respectively)	507	412
Additional paid-in capital	28,728,717	12,403,043
Accumulated other comprehensive loss	(439,635)	(52,684)
Accumulated deficit	(2,723,597)	(2,057,190)
Total shareholders' equity	25,565,992	10,293,581
Total liabilities, mezzanine equity and shareholders' equity	¥ 28,524,246	¥ 14,160,742

PARENT ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Parenthetical) (Details) ¥ in Thousands	Dec. 31, 2020 $ / shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2019 $ / shares	Dec. 31, 2019 CNY (¥) shares
Ordinary shares
Ordinary shares, par value (in dollars per share) \| $ / shares	$ 0.00005		$ 0.00005
Ordinary shares, shares authorized		2,002,000,000		2,002,000,000
Redeemable preferred shares
Redeemable preferred shares
Preferred Stock, Par or Stated Value Per Share \| $ / shares	0.00005		0.00005
Preferred Stock, Shares Authorized		150,000		150,000
Preferred Stock, Shares Issued		150,000		150,000
Preferred Stock, Shares Outstanding		150,000		150,000
Redemption value \| ¥		¥ 980,910		¥ 1,061,981
Liquidation value \| ¥		¥ 2,576,578		¥ 1,537,636
Class A
Ordinary shares
Ordinary shares, shares issued		1,427,590,059		1,148,842,379
Ordinary shares, shares outstanding		1,427,590,059		1,148,842,379
Class B
Ordinary shares
Ordinary shares, shares issued		67,590,336		67,590,336
Ordinary shares, shares outstanding		67,590,336		67,590,336
Parent Company \| Reportable Legal Entities
Ordinary shares
Ordinary shares, par value (in dollars per share) \| $ / shares	0.00005		0.00005
Ordinary shares, shares authorized		2,002,000,000		2,002,000,000
Parent Company \| Reportable Legal Entities \| Redeemable preferred shares
Redeemable preferred shares
Preferred Stock, Par or Stated Value Per Share \| $ / shares	$ 0.00005		$ 0.00005
Preferred Stock, Shares Authorized		150,000		150,000
Preferred Stock, Shares Issued		150,000		150,000
Preferred Stock, Shares Outstanding		150,000		150,000
Redemption value \| ¥		¥ 980,910		¥ 1,061,981
Liquidation value \| ¥		¥ 2,576,578		¥ 1,537,636
Parent Company \| Reportable Legal Entities \| Class A
Ordinary shares
Ordinary shares, shares issued		1,427,590,059		1,148,842,379
Ordinary shares, shares outstanding		1,427,590,059		1,148,842,379
Parent Company \| Reportable Legal Entities \| Class B
Ordinary shares
Ordinary shares, shares issued		67,590,336		67,590,336
Ordinary shares, shares outstanding		67,590,336		67,590,336

PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Operations (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statements of Operations
Net revenue	¥ 5,738,972	¥ 4,122,405	¥ 2,792,077
Cost of revenue	(4,188,521)	(3,079,679)	(2,169,636)
Gross loss	1,550,451	1,042,726	622,441
Operating expenses
Selling and marketing expenses	(134,937)	(129,901)	(110,570)
General and administrative expenses	(702,524)	(411,418)	(329,601)
Research and development expenses	(40,049)	(21,627)	(13,915)
Income from operations	672,941	479,780	168,355
Other income (expenses):
Interest income	29,011	53,017	19,213
Interest expenses	(1,316,506)	(968,693)	(656,186)
Others, net	4,952	5,565	5,436
Loss before income taxes	(548,436)	(426,433)	(439,659)
Income tax expenses	(120,778)	(15,650)	9,391
Net loss	(669,214)	(442,083)	(430,268)
Parent Company \| Reportable Legal Entities
Condensed Statements of Operations
Cost of revenue	(94,312)	(50,201)	(21,132)
Gross loss	(94,312)	(50,201)	(21,132)
Operating expenses
Selling and marketing expenses	(58,649)	(40,721)	(26,595)
General and administrative expenses	(224,934)	(153,854)	(96,581)
Research and development expenses	(4,596)	(2,364)	(949)
Income from operations	(382,491)	(247,140)	(145,257)
Other income (expenses):
Interest income	18,641	48,020	14,907
Interest expenses	(155,605)	(128,539)	(48,809)
Equity in loss of subsidiaries	(144,153)	(114,418)	(251,085)
Others, net	(2,799)	(6)	(24)
Loss before income taxes	(666,407)	(442,083)	(430,268)
Net loss	¥ (666,407)	¥ (442,083)	¥ (430,268)

PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Comprehensive Loss (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statements of Comprehensive Loss
Net loss	¥ (669,214)	¥ (442,083)	¥ (430,268)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of nil tax	(386,951)	86,570	61,434
Comprehensive loss	(1,056,165)	(355,513)	(368,834)
Parent Company \| Reportable Legal Entities
Condensed Statements of Comprehensive Loss
Net loss	(666,407)	(442,083)	(430,268)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of nil tax	(386,951)	86,570	61,434
Comprehensive loss	¥ (1,053,358)	¥ (355,513)	¥ (368,834)

- Definition

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Comprehensive Loss (Parenthetical) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statements of Comprehensive Loss
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0
Parent Company \| Reportable Legal Entities
Condensed Statements of Comprehensive Loss
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating activities:
Net cash used in operating activities	¥ 320,887	¥ 293,436	¥ (12,910)
Investing activities:
Net cash used in investing activities	(9,378,007)	(5,131,231)	(4,733,050)
Financing activities:
Proceeds from long-term borrowings	6,939,140	5,000,510	2,814,197
Payment of issuance cost of borrowings	(112,512)	(156,742)	(91,124)
Payment of commitment cost of borrowings	(45,968)
Repayment of long-term borrowings	(4,187,184)	(1,968,913)	(834,154)
Proceeds from exercise of stock options	78,748	55,469	16,866
Net proceeds from issuance of convertible bonds			1,867,304
Net proceeds from issuance of ordinary shares	15,974,517	4,934,126	1,283,308
Net proceeds from issuance of redeemable preferred shares		989,349
Payment of redeemable preferred shares dividends	(65,489)	(25,014)
Net cash provided by financing activities	20,143,661	8,361,939	4,876,806
Effect of exchange rate changes on cash and restricted cash	(566,874)	164,370	206,302
Net increase in cash and restricted cash	10,519,667	3,688,514	337,148
Cash and restricted cash at beginning of year	5,973,262	2,284,748	1,947,600
Cash and restricted cash at end of year	16,492,929	5,973,262	2,284,748
Supplemental disclosures of cash flow information
Interest paid	1,113,443	841,388	633,063
Supplemental disclosures of non-cash investing and financing activities
Settlement of liability-classified restricted share award	10,089	7,984	6,357
Conversion of convertible bonds	65
Parent Company \| Reportable Legal Entities
Operating activities:
Net cash used in operating activities	(45,269)	(48,514)	(33,729)
Investing activities:
Increase of due from subsidiaries	(4,940,005)	(4,473,682)	(3,846,353)
Net cash used in investing activities	(4,940,005)	(4,473,682)	(3,846,353)
Financing activities:
Proceeds from long-term borrowings		268,100	413,433
Payment of issuance cost of borrowings	(10,619)		(25,751)
Payment of commitment cost of borrowings	(45,968)
Repayment of long-term borrowings	(657,820)
Proceeds from exercise of stock options	78,748	55,469	16,866
Net proceeds from issuance of convertible bonds			1,867,304
Net proceeds from issuance of ordinary shares	15,974,517	4,934,126	1,283,308
Net proceeds from issuance of redeemable preferred shares		989,349
Payment of redeemable preferred shares dividends	(65,489)	(25,014)
Net cash provided by financing activities	15,273,369	6,222,030	3,555,160
Effect of exchange rate changes on cash and restricted cash	(563,459)	70,291	143,216
Net increase in cash and restricted cash	9,724,636	1,770,125	(181,706)
Cash and restricted cash at beginning of year	2,587,613	817,488	999,194
Cash and restricted cash at end of year	12,312,249	2,587,613	817,488
Supplemental disclosures of cash flow information
Interest paid	92,509	88,818	24,308
Supplemental disclosures of non-cash investing and financing activities
Settlement of liability-classified restricted share award	10,089	¥ 7,984	¥ 6,357
Conversion of convertible bonds	¥ 65

SUBSEQUENT EVENTS (Details) - Subsequent Events ¥ in Thousands	3 Months Ended
	Apr. 09, 2021 CNY (¥) subsidiary	Mar. 31, 2021 CNY (¥)	Feb. 28, 2021 CNY (¥)
Various facility agreements with third-party banks
SUBSEQUENT EVENTS
Number of subsidiaries that obtained credit facility agreements \| subsidiary	4
Amount of credit facilities	¥ 944,000
Beijing 15
SUBSEQUENT EVENTS
Estimated total enterprise value			¥ 4,330,000
Shenzhen 8
SUBSEQUENT EVENTS
Purchase price		¥ 89,773
Contingent consideration		¥ 35,909
Tianjin 1
SUBSEQUENT EVENTS
Purchase price			¥ 133,060
Tianjin 1
SUBSEQUENT EVENTS
Equity interest acquired (as a percent)			65.00%