(Jan 23): DayOne Data Centers Ltd is targeting a valuation as high as US$20 billion ($25.59 billion) in its planned US initial public offering (IPO), people familiar with the matter said, in what would be a substantial increase from recent funding rounds.
The Singapore-based data centre operator is seeking to hire banks for the potential share sale, which may take place as soon as this year, the people said, asking not to be identified because the information is private. DayOne is also considering a dual listing in the US and Singapore as an option, some of the people said.
Deliberations are ongoing and no final decisions on valuation, timing and the dual listing have been made, the people added.
A representative from DayOne didn’t respond to a request seeking comment.
DayOne, previously known as GDS International or GDSI, closed a more than US$2 billion Series C funding round earlier this month to support its international expansion. The round, which was led by existing investor Coatue Management, was expected to push the company’s valuation to about US$10 billion, people familiar with the matter have said.
DayOne is backed by Chinese data centre operator GDS Holdings Ltd, which in January sold US$385 million of DayOne shares and said the value of its remaining equity interest in the company was more than US$2.2 billion.
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Data centres have become a popular sector as companies and investors plow money into infrastructure needed to power the artificial intelligence (AI) boom. Hundreds of billions of dollars are expected to be spent on data centre leases as companies seek computing power to build out AI models.
DayOne runs data centres in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo and Finland, its website shows. It raised US$1.9 billion in two funding rounds in 2024 that also included backing from Boyu Capital, Hillhouse Investment, SoftBank Vision Fund and Citadel chief executive officer Ken Griffin.
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