Rewrites throughout, updates with pricing details

March 13 (Reuters) - China-based data center operator VNET Group VNET.O on Thursday raised $430 million in convertible bonds for investing in the wholesale internet data center projects under the current booming artificial intelligence space.

Under the offering, the initial conversion price of $13.75 per American depositary share represents a 25% premium to the stock's last close. VNET's shares dropped more than 11.7% to $9.715 after the company raised more capital than it had already planned.

The firm, earlier in the day, said it was seeking to raise $400 million in senior convertible notes.

The bonds will have a coupon of 2% to 2.50% and a conversion premium of 25% to 30%, according to terms of the deal, Bloomberg News reported.

VNET currently operates in more than 30 cities in China and it posted revenue of 2.25 billion Chinese yuan ($310.61 million) in the fourth quarter.

The move underscores the current global surge in demand for data centers, driven by the rapid rise of AI, with markets expecting further growth in investor appetite.

The maturity date for VNET's notes is April 1, 2030, unless they are repurchased, redeemed, or converted before that.

VNET plans to use the net proceeds from the offering for capital investment in wholesale internet data center projects, working capital and general corporate purposes.

Goldman Sachs is acting as the sole bookrunner for the offering.

($1 = 7.2439 Chinese yuan renminbi)

(Reporting by Adwitiya Srivastava and Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala and Alan Barona)

((Roshan.Thomas@thomsonreuters.com))