NEW YORK — VNET Group Inc. shares skyrocketed more than 30% in early trading Wednesday, surging to $11.74 as the Chinese data center operator announced a significant strategic investment that bolsters its balance sheet and accelerates growth in China's booming AI infrastructure sector.

The Nasdaq-listed company, a leading carrier-neutral internet data center services provider, revealed that PJ Millennium I and II funds will acquire up to 650 million Class A shares from existing sellers at $1.4486 per share, equivalent to about $8.69 per American Depositary Share. The deal could give the new investors up to 38.1% ownership upon closing, expected in the fourth quarter of 2026, subject to regulatory approvals and other conditions.

Investor rights, lock-up agreements and voting pacts with founder Josh Sheng Chen aim to maintain stability and align interests. The transaction injects fresh capital and signals strong external confidence in VNET's position amid surging demand for AI-ready data centers in China.

The move comes as VNET prepares to report first-quarter 2026 results on May 26. Analysts expect continued strength from wholesale data center demand and AI workloads, following robust 2025 performance where the company beat revenue guidance and projected 15.6% to 18.6% growth for 2026.

VNET has aggressively expanded capacity to meet hyperscale and AI-driven needs. Its wholesale segment utilization........

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