VNET (VNET) is exploring funding options, including a US dollar bond sale, to expand capacity amid rising competition in China's artificial intelligence sector, Bloomberg reported Wednesday, citing people familiar with the matter.

Investment banks have gauged investor interest in a potential three-year dollar-denominated debt offering with a yield around 9%, though terms are not yet finalized, the people reportedly said.

VNET has received regulatory approval to issue up to $500 million in offshore notes, but may not use the full quota, the people told Bloomberg.

The fundraising consideration follows a record order to supply ByteDance with about 500 megawatts of data center capacity in China, the report added.

VNET did not immediately respond to MT Newswires' request for comment.

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