DayOne Data Centers Taps JPMorgan, Morgan Stanley for US$5B IPO
Singapore data center operator DayOne targets US$5B IPO with US$20B valuation, backed by JPMorgan and Morgan Stanley. AI infrastructure demand drives premium valuations across Asia-Pacific expansion.
Singapore-based data center operator DayOne Data Centers has selected JPMorgan Chase and Morgan Stanley to lead a US initial public offering expected to raise approximately US$5 billion, with Bank of America and Citigroup also participating in the transaction. The company is targeting a valuation as high as US$20 billion, positioning it as one of 2026's most significant infrastructure listings.
The IPO preparation comes just weeks after DayOne closed a Series C funding round exceeding US$2 billion in January, led by existing investor Coatue Management with participation from Indonesia Investment Authority. The company, backed by Chinese data center operator GDS Holdings, plans to list this year, though sources familiar with the matter note that offering details including size may still change.
Hyperscale Capacity Across Seven Markets
DayOne operates over 500 megawatts of data center capacity across seven Asia-Pacific markets and Europe, including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Japan, and Finland. The company maintains 480 megawatts of operational and under-construction capacity, plus an additional 590 megawatts of reserved capacity for future development.
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The operator's geographic footprint positions it to capture growing demand for digital infrastructure supporting artificial intelligence deployment and cloud migration across emerging Asian economies. The company's investor base includes prominent institutional names such as Boyu Capital, Hillhouse Investment, and Citadel CEO Ken Griffin, reflecting the premium valuation that AI-supporting infrastructure commands in current capital markets.
DayOne recently invested €1.2 billion (US$1.4 billion) in a hyperscale campus in Lahti, Finland, marking its European market entry and diversification beyond Asia-Pacific core markets. The expansion addresses Singapore's land scarcity and power constraints that limit hyperscale development in the city-state.
IPO Preparation Amid Market Turbulence
The listing preparation occurs during significant volatility in US public markets. The Nasdaq 100 Index declined 4.6% over ten trading sessions, shedding approximately US$1.5 trillion in market value, driven by sell-offs in software and service providers perceived as vulnerable to AI disruption.
Recent weeks have seen several technology listings struggle. Clear Street Group postponed its offering entirely after cutting its listing target, while Brazilian fintech AGI reduced its IPO size amid challenging market conditions.
Despite broader market challenges, data centers remain an attractive sector as companies and investors increasingly allocate capital to digital infrastructure essential for AI advancement. Infrastructure assets supporting AI workloads maintain differentiated appeal compared to application-layer technologies facing disruption concerns.
Strategic Separation from Parent Company
DayOne was previously known as GDS International before rebranding in January 2025, coinciding with a strategic spin-off from parent company GDS Holdings. The Shanghai-based parent maintains a 35.6% non-controlling stake in DayOne following the separation, enabling GDS to retain significant exposure while allowing DayOne to pursue independent growth strategies and public market valuation.
GDS Holdings raised US$300 million through a Series B preferred share placement in February 2026, supporting international expansion while managing China-based leverage risks. The parent company's continued capital deployment demonstrates sustained institutional appetite for Asia-Pacific hyperscale capacity.
The IPO is expected to occur this year, though sources note that considerations remain ongoing and additional banks may still be added to the arrangement. The listing would provide DayOne with substantial capital to expand capacity and meet accelerating demand from AI model deployment across regional markets.
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