(May 14): DayOne Data Centers Ltd is considering upsizing its Series C funding round to more than US$4 billion ($5.1 billion), according to people familiar with the situation, amid strong investor interest in assets supporting an artificial intelligence boom.
The new size would be about twice as big as a previous closing in January and led mostly by existing backers, the people said, asking not to be identified because the deliberations are private.
DayOne, which was close to filing confidentially for a listing in the US in March, is now focused on completing the upsized Series C round before making a decision on the timeline of its share sale, the people said. DayOne is also considering a dual listing in the US and Singapore as an option, people familiar with the matter have said.
Separately, DayOne is speaking with investment banks about raising about US$1 billion in a revolving credit facility to help fund its expansion, one the people said.
Deliberations are ongoing and no final decisions have been made, the people said. A representative for DayOne didn’t respond to a request seeking comment.
The rising demand for AI has made data centres a prime target for companies and investors eager to fund critical digital infrastructure. That’s sparked a wave of dealmaking activity across the US and Asia. Meanwhile, public data centre stocks are surging, with US companies Equinix Inc and Iron Mountain Inc up 41% and 52% this year, respectively.
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Previously known as GDS International, DayOne secured more than US$2 billion in Series C equity financing in January to support its international growth. The round was led by investor Coatue Management.
DayOne runs data centres in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo and Finland, its website shows. Other backers include GDS Holdings Ltd, Boyu Capital, Hillhouse Investment, SoftBank Vision Fund, Tekne Capital, Baupost Group and Citadel chief executive officer Ken Griffin.
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