Singapore-based DayOne Data Centers in talks for $2.6 billion in upsized funding: Sources

Hong Kong – DayOne Data Centers is in advanced talks to raise more than US$2 billion (S$2.6 billion) in an upsized Series C funding round to help support its expansion in international markets, according to people familiar with the matter.

The Singapore-based data centre operator may reach a valuation of about US$10 billion after the potential fund raising, the people said. The round is likely to be led by existing investors, they noted, adding that some fresh backers may also join.

Talks are at an advanced stage and a deal could be signed before the end of 2025, 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 fund-raising rounds that also included backing from Boyu Capital, Coatue Management, Hillhouse Investment, SoftBank Vision Fund and Citadel chief executive 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 in 2025, 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 in 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. In October, Temasek and Nvidia were part of an investor group that agreed to buy Aligned Data Centers in a US$40 billion deal. BLOOMBERG