Latest news with #GDS
Yahoo
5 hours ago
- Business
- Yahoo
No clear plan for supporting Guam missile defense system, GAO finds
The Defense Department has yet to develop a clear strategy to guide the construction, deployment and long-term management of the missile defense architecture it is building on Guam, the Government Accountability Office has determined. The office is concerned that without such a plan, the effort risks cost and schedule overruns and an infrastructure unready to accommodate the additional personnel required to operate the defensive shield. In a report released May 22, the government watchdog notes that while the Pentagon has set up organizations to manage the Guam Defense System and has now designated lead services for sustaining and operating it, there is no strategy to transfer responsibilities from the Missile Defense Agency to the various service leads. 'As a result, DOD risks schedule delays for the deployment of GDS [Guam Defense System] elements and incomplete plans for organization, training, personnel levels, and facilities, among other things,' the report states. The Army, which is leading the effort to establish the system on the strategic island in the Pacific, also faces hurdles to advocate for construction and installation support from the other military services well-established on Guam. And the Defense Department has yet to come up with firm numbers for personnel required to operate and sustain the system and estimates of when they might arrive, according to the report. 'Without clear personnel requirements or deployment schedules, the services will not be able to adequately plan for necessary support systems, which will reduce service personnel readiness and may exacerbate existing infrastructure,' the watchdog states. At the end of 2023, the Pentagon pointed to 2024 as critical for establishing the planned missile defense architecture on Guam. As the threat from China continues to grow, DOD pledged to deliver a foundational capability to help stave off a potential attack directed at Guam by the end of 2024. That schedule is already slipping. Guam is an island of nearly 170,000 people that sits in a vulnerable position — it is closer to Beijing than it is to Hawaii. The island plays host to a significant amount of U.S. combat power and would therefore be an attractive target for China in the event of a war in the Taiwan Strait. The Missile Defense Agency and the Army sought a combined $1.5 billion in the fiscal 2024 budget to begin preparing the island by moving assets into place and integrating capabilities. The Pentagon designated the Army in 2023 as the lead service overseeing the acquisition and execution plan for defending Guam. The current plan, according to the report, is to distribute elements of the architecture across 16 sites on the island and establish a Guam command center. The Pentagon is planning for its first deployment to begin in fiscal 2027, with final GDS elements coming in fiscal 2032. The architecture is a tall order, considering the Army's previous experience establishing a Terminal High Altitude Area Defense, or THAAD, system on Guam in 2013. The THAAD battery, known as Task Force Talon, was first deployed as expeditionary but became permanently stationed in June 2016 to defend against possible ballistic missile threats from North Korea. Over a decade later, the report points out that the Army does not have sufficient installation support for the THAAD battery and has had trouble getting approvals from the Navy for construction to support the system. The Army's status on the island leaves it without its own construction planners, forcing it to rely on other services. For example, GAO reports that the THAAD unit did not receive approval to start environmental work until January 2024 to construct a temporary maintenance facility for equipment after a typhoon hit the island in May 2023. The unit also has limited storage space for parts and has to leave some parts outside unprotected, resulting in continuous corrosion issues. And austere conditions have resulted in 'morale challenges,' GAO found. The THAAD unit had just installed a latrine with running water and an ice machine in 2023. There is still no drinkable water at the location. The Army is going to require a much larger number of facilities to support the new missile defense architecture and wants to 'make Guam a duty station of choice,' the report states. The Army will continue to have to rely on installation support from the other services because it won't be establishing its own base on the island, GAO said. 'The Army will likely face challenges in advocating for construction priorities and coordinating installation support across multiple locations.' At the same time, the Pentagon is looking to move personnel to the island for the missile defense system. The Marine Corps is also relocating 1,700 Marines from Okinawa, Japan, to Guam. The plan is to move them all by 2029, the report notes. The agency previously reported Guam's limited housing is a concern as the Marines build up a presence there, and the Air Force and Navy both have construction priorities for their own bases that could compete for resources needed for the missile defense system's establishment. The Pentagon also struggled to determine which service would be responsible for operating and sustaining which elements of the Guam architecture. GAO indicated there were some internal disputes over the division of responsibilities for various aspects of the system. Despite the deputy secretary of defense directing the Army in June 2023 to determine how many personnel would be required for GDS within 120 days, the service did not complete the task and still had not produced a number by August 2024, according to the report. The Army told GAO it was waiting for the Pentagon to decide the lead organizations for operations and sustainment before determining personnel levels, facility needs and training plans. The Pentagon has also not established a timeline for transferring responsibility, according to the report. 'DOD has proposed multiple military services to manage GDS, which makes developing a plan for operating and sustaining GDS particularly challenging,' the report states. 'Specifically, DOD officials told us that this missile defense program will be the department's largest and most complicated, presenting communication and planning challenges among the various DOD stakeholders.' Without some prediction of personnel that will flow onto the island over what timeline, the Pentagon faces the prospect of 'deploying personnel to Guam without adequate facilities or installation support services in place, including security of sites, fire protection and emergency management at bases operated by three different military services in Guam,' according to the report. Some estimates state there will be a need for roughly 913 Army personnel in Guam by fiscal 2028, while another calculates a possible growth of 4,464 personnel by the same year. Overall, the island's population is estimated to grow from 17,917 personnel and dependents to 26,605 by fiscal 2034. In its report, GAO recommends that the Pentagon develop a strategy with a timeline for transferring responsibilities to lead organizations and services for the various elements of the architecture. The Army should also develop a 'long-term strategy' for its organization as a supported command on the island. And the defense secretary should determine personnel requirements needed for the architecture 'to allow sufficient time for completing construction of necessary support facilities on Guam,' the report states.
Time of India
11 hours ago
- Politics
- Time of India
Guam missile defense system under pressure: $8 billion U.S. plan struggles with delays, leadership gaps, and China threat
Guam missile defense system is facing serious problems despite an $8 billion investment by the U.S. military. A new GAO report reveals delays, unclear leadership, and poor infrastructure planning that threaten the Pentagon's ability to defend Guam from potential Chinese missile attacks. With missing timelines, unapproved facilities, and troops relying on bottled water, the situation paints a worrying picture. The system, critical to counter China's growing missile threat, lacks a clear strategy for long-term operation. These gaps raise urgent questions about the island's readiness in case of conflict. Here's what's really going wrong behind the scenes. Tired of too many ads? Remove Ads Why is the Guam missile Defense system facing delays despite billions in funding? How is the army struggling to maintain current Defenses on Guam? Tired of too many ads? Remove Ads What are the logistics and housing gaps delaying deployment? Who is supposed to run the Guam missile Defense system? Is Guam ready for a potential missile conflict with China? FAQs: Tired of too many ads? Remove Ads The $8 billion US missile defense plan for Guam—aimed at protecting the island from potential Chinese missile attacks—is facing serious challenges, according to a recent report by the US Government Accountability Office (GAO). Despite being one of the Pentagon's top defense priorities, the report reveals troubling gaps in planning, infrastructure, and long-term Pentagon's Guam Defense System (GDS) is supposed to offer a 360-degree missile shield around the island. It's a response to China's expanding missile force, especially weapons like the DF-26 "Guam Express"—a missile that can strike Guam from over 2,500 miles away. However, the GAO report, released last week, reveals the Department of Defense (DoD) still lacks a clear strategy for who will operate and sustain the system once no finalized timeline or leadership plan between the Missile Defense Agency (MDA) and the military services. The system is supposed to be managed across 16 sites on Guam, with installation running from 2027 to 2032, but many critical operational questions remain US Army has had trouble even with its current responsibilities on the island. For more than 10 years, Guam has hosted a THAAD (Terminal High Altitude Area Defense) battery, but basic support and maintenance are lacking. Army vehicles are being repaired under tarps, and there is still no permanent facility for the THAAD system. When a typhoon hit Guam in 2023, Army units had to rely on the Marine Corps for hangar inspectors found that soldiers stationed there were drinking bottled water due to a lack of clean water access. These issues have created what the report described as 'morale challenges' for Army personnel and military operations, the Pentagon hasn't figured out how many service members will be needed, where they'll live, or how schools, medical services, and grocery stores will support them. This makes it nearly impossible to plan for training, housing, or deployment some branches have tried to estimate their needs, the lack of an overarching plan has left critical infrastructure and personnel decisions in limbo. The Army is currently waiting for clarity before it can move forward with essential logistics.A major issue is the unclear chain of command. The GAO report says the Pentagon hasn't defined which military branch or agency will lead the Guam Defense System. Some responsibilities are shared between services, while others might fall to the Missile Defense confusion could lead to duplication, delays, or gaps in operations when the system goes live. Lt. Gen. Robert Rasch, who oversees the GDS project, told the Senate Armed Services Strategic Forces Subcommittee earlier this month that the project will cost around $8 People's Liberation Army Rocket Force has thousands of missiles, many aimed at deterring or disabling US bases in the Indo-Pacific region. Guam—home to key US airfields and submarines—would likely be one of the first targets in a conflict. Experts warn that the US could face an unprecedented missile threat if war were to break out with the Guam Defense System is meant to address this risk, the lack of a clear operating plan, insufficient infrastructure, and poor conditions for current troops suggest that Guam is far from US military's efforts to build a strong missile defense for Guam are urgent, especially as threats from China grow. But without answers on who's in charge, how many troops are needed, and where they'll live and work, the system is far from battle-ready. If the Pentagon doesn't address these gaps soon, Guam may remain a vulnerable target—despite the billions already being system lacks leadership, planning, and support despite $8 billion hosts key US bases and is within range of China's DF-26 missiles.
Business Insider
a day ago
- Business
- Business Insider
GDS Holdings announces offering of $450M of convertible senior notes due 2032
GDS Holdings (GDS) announced the commencement of a proposed offering of convertible senior notes in an aggregate principal amount of $450M due 2032, subject to market conditions and other factors, in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Business Insider
a day ago
- Business
- Business Insider
GDS Holdings announces offering of 5.2M American Depositary Shares
GDS Holdings (GDS) announced the commencement of a proposed offering of 5.2M American Depositary Shares, each representing eight Class A ordinary shares, subject to market and other conditions, in an underwritten registered public offering. The underwriters will have a 30-day option to purchase up to 780,000 additional ADSs. The company will receive all of the net proceeds from the Primary ADSs Offering and plans to use such net proceeds for general corporate purposes, working capital needs and the refinancing of its existing indebtedness, including potential future negotiated repurchases, or redemption upon exercise of the investor put right, of its convertible bonds due 2029. J.P. Morgan, BofA Securities, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers, and China Galaxy International and Guotai Junan International are acting as financial advisors for the Primary ADSs Offering. Confident Investing Starts Here:
Yahoo
a day ago
- Business
- Yahoo
GDS Announces Pricing of Public Offering of ADSs
SHANGHAI, China, May 27, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited ('GDS Holdings', 'GDS' or the 'Company') (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced the pricing of its previously announced underwritten registered public offering of 5,200,000 American Depositary Shares ('ADSs'), each representing eight Class A ordinary shares, par value US$0.00005 per share (the 'Primary ADSs Offering'), at a public offering price of US$24.50 per ADS (the 'Primary ADSs Offering Price'). The underwriters have been granted a 30-day option to purchase up to 780,000 additional ADSs. The offering is expected to close on May 30, 2025, subject to customary closing conditions. GDS estimates that the net proceeds from the Primary ADSs Offering will be approximately $123.0 million, after deducting the underwriters' discount and estimated offering expenses (or approximately $141.6 million if underwriters exercise in full their option to purchase additional ADSs). The Company will receive all of the net proceeds from the Primary ADSs Offering and plans to use such net proceeds for general corporate purposes, working capital needs and the refinancing of its existing indebtedness, including potential future negotiated repurchases, or redemption upon exercise of the investor put right, of its convertible bonds due 2029. The Company also announced today by separate press release the pricing of an offering (the 'Notes Offering') of 2.25% convertible senior notes in an aggregate principal amount of US$500 million due 2032 (the 'Notes') in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the 'Securities Act'), which offering size was upsized from $450 million aggregate principal amount. The Company has granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$50 million in aggregate principal amount of the Notes, exercisable for settlement within a 13-day period, beginning on, and including, the first date on which the Notes are issued. The Company also announced today by separate press release the pricing of a separate registered public offering (the 'Delta Placement of Borrowed ADSs') of 6,000,000 ADSs (the 'Borrowed ADSs'), at a public offering price of US$24.50 (which is the same public offering price as the Primary ADSs Offering Price), that the Company will lend to an affiliate (the 'ADS Borrower') of an initial purchaser in the Notes Offering in order to facilitate the privately negotiated derivative transactions entered into by some holders of the Notes for purposes of hedging their investment in the Notes. The Company has also entered into an ADS lending agreement (the 'ADS Lending Agreement') with an affiliate of the initial purchaser of the Notes Offering (such affiliate being the 'ADS Borrower'), pursuant to which the Company will lend the Borrowed ADSs to the ADS Borrower. The ADS Borrower or its affiliate will receive all of the proceeds from the sale of the Borrowed ADSs and the Company will not receive any of those proceeds, but the ADS Borrower will pay the Company a nominal lending fee for the use of those ADSs pursuant to the ADS Lending Agreement. The activity described above could affect the market price of the Company's ADSs otherwise prevailing at that time. Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy any securities, including the Primary ADSs, the Notes or the Borrowed ADSs, nor shall there be any offer or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. The Primary ADSs Offering and the Delta Placement of Borrowed ADSs are being made only by means of separate prospectus supplements and accompanying prospectuses pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission (the 'SEC'). The closing of each of the Primary ADSs Offering, the Notes Offering and the Delta Placement of Borrowed ADSs is conditioned upon the closing of each of the other offerings and vice versa. If any of the three offerings are not consummated, the ADS loan transaction under the ADS Lending Agreement will terminate and all of the Borrowed ADSs must be returned to GDS. J.P. Morgan, BofA Securities, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers, and China Galaxy and Guotai Junan International are acting as financial advisors, for the Primary ADSs Offering. The Company has filed an automatic shelf registration statement on Form F-3 with the SEC. A prospectus supplement and the accompanying prospectus describing the terms of the Primary ADSs Offering have been filed with the SEC. When available, the prospectus supplement for the Primary ADSs Offering will be filed with the SEC. The Primary ADSs Offering is being made only by means of the prospectus supplement and accompanying prospectus. Before you invest, you should read the prospectus supplement and the accompanying prospectus and other documents that the Company has filed with the SEC for more complete information about the Company and the Primary ADSs Offering. You may obtain these documents free of charge by visiting EDGAR on the SEC website at Copies of the prospectus supplement and the accompanying prospectus, when available, may be obtained from: (i) J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 866-803-9204 or by email at prospectus-eq_fi@ (ii) BofA Securities, Inc., One Bryant Park, New York, NY, 10036, Attention: Prospectus Department, telephone: +1 (800) 294-1322, email: (iii) Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or (iv) UBS Investment Bank, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone: (888) 827-7275 or email: ol-prospectusrequest@ About GDS Holdings Limited GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company's facilities are strategically located in and around primary economic hubs where demand for high-performance data center services is concentrated. The Company's data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company offers co-location and a suite of value-added services, including managed hybrid cloud services through direct private connection to leading public clouds, managed network services, and, where required, the resale of public cloud services. The Company has a 24-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company's customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a non-controlling 35.6% equity interest in DayOne Data Centers Limited which develops and operates data centers in International markets. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'aim,' 'anticipate,' 'believe,' 'continue,' 'estimate,' 'expect,' 'future,' 'guidance,' 'intend,' 'is/are likely to,' 'may,' 'ongoing,' 'plan,' 'potential,' 'target,' 'will,' and similar statements. Among other things, statements that are not historical facts, including statements about GDS Holdings' beliefs and expectations regarding the Primary ADSs Offering, the Notes Offering and the Delta Placement of Borrowed ADSs, the growth of its businesses and its revenue for the full fiscal year, the business outlook and quotations from management in this announcement, as well as GDS Holdings' strategic and operational plans, are or contain forward-looking statements. GDS Holdings may also make written or oral forward-looking statements in its periodic reports to the SEC on Forms 20-F and 6-K, in its current, interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the Stock Exchange of Hong Kong Limited (the 'Hong Kong Stock Exchange'), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause GDS Holdings' actual results or financial performance to differ materially from those contained in any forward-looking statement, including but not limited to the following: GDS Holdings' goals and strategies; GDS Holdings' future business development, financial condition and results of operations; the expected growth of the market for high-performance data centers, data center solutions and related services in China and regions in which GDS' major equity investees operate, such as South East Asia; GDS Holdings' expectations regarding demand for and market acceptance of its high-performance data centers, data center solutions and related services; GDS Holdings' expectations regarding building, strengthening and maintaining its relationships with new and existing customers; the results of operations, growth prospects, financial condition, regulatory environment, competitive landscape and other uncertainties associated with the business and operations of our significant equity investee DayOne; the continued adoption of cloud computing and cloud service providers in China and other major markets that may impact the results of our equity investees, such as South East Asia; risks and uncertainties associated with increased investments in GDS Holdings' business and new data center initiatives; risks and uncertainties associated with strategic acquisitions and investments; GDS Holdings' ability to maintain or grow its revenue or business; fluctuations in GDS Holdings' operating results; changes in laws, regulations and regulatory environment that affect GDS Holdings' business operations and those of its major equity investees; competition in GDS Holdings' industry in China and in markets that affect the business of our major equity investees, such as South East Asia; security breaches; power outages; and fluctuations in general economic and business conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in GDS Holdings' filings with the SEC, including its annual report on Form 20-F, and with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release and are based on assumptions that GDS Holdings believes to be reasonable as of such date, and GDS Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: GDS Holdings LimitedLaura ChenPhone: +86 (21) 2029-2203Email: ir@ Piacente Financial CommunicationsRoss WarnerPhone: +86 (10) 6508-0677Email: GDS@ Brandi PiacentePhone: +1 (212) 481-2050Email: GDS@ GDS Holdings LimitedError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
