DayOne Data Centers seeks US$2 billion in upsized funding deal: sources

[SINGAPORE] Singapore-based DayOne Data Centers is in advanced talks to raise more than US$2 billion in an upsized Series C funding round to help support its expansion in international markets, according to people familiar with the matter.

The data centre operator may reach a valuation of about US$10 billion after the potential fundraising, the people said, asking not to be identified discussing confidential information. The round is likely to be led by existing investors, the people said, adding that some fresh backers may also join.

Talks are at an advanced stage and a deal could be signed before the end of the year, although no final decisions have been made, the people said. In September, Bloomberg News reported that DayOne was considering raising at least US$1 billion in a funding round.

A representative from DayOne did not respond to a request seeking comment.

Chinese data centre operator GDS Holdings holds a 35.6 per cent stake in DayOne after the firm completed two fundraising rounds that also included backing from Boyu Capital, Hillhouse Investment, SoftBank Vision Fund and Citadel chief executive officer Ken Griffin.

DayOne was known as GDS International or GDSI until a rebranding at the start of 2025. It has a hub of data centres in Singapore, Malaysia and Indonesia, as well as a presence in Thailand, Hong Kong, Japan and Finland, its website shows.

GDS shares have rallied about 46 per cent in Hong Kong this year, leaving the Chinese company with a market value of about US$6.9 billion. The company is also listed in the US.

Global investors have been eyeing data centres as companies invest on artificial intelligence infrastructure. In September, Bain Capital agreed to sell its data centres in China to Shenzhen Dongyangguang Industry in a transaction valued at about US$4 billion.

A month later, investors led by BlackRock’s Global Infrastructure Partners agreed to buy Aligned Data Centers in a US$40 billion deal. BLOOMBERG