DayOne Data Centers in Advanced Talks for Over $2B Funding, Nears $10B Valuation
December 4, 2025
The race to build infrastructure for artificial intelligence is fueling massive capital flows into the data center sector, with Asia emerging as a key battleground. In a move highlighting the region's strategic importance, Singapore-based operator DayOne Data Centers is now in advanced discussions to raise more than $2 billion in an upsized Series C funding round, according to people familiar with the matter.
The proposed round, which could conclude before the end of the year, is expected to be led by existing investors and may also attract new backers. If successful, it would value the fast-growing digital infrastructure company at approximately $10 billion. This potential valuation surge underscores the intense investor appetite for platforms capable of scaling rapidly to meet the explosive demand for AI-ready data center capacity across Asia.
DayOne, formerly known as GDS International, has aggressively expanded its footprint beyond its Singapore base to establish a network of facilities across Malaysia, Indonesia, Thailand, Hong Kong, Japan, and Finland. This geographic spread positions the company as a critical player in regional AI infrastructure development. The funding momentum follows a strong performance by its major shareholder, GDS Holdings (NASDAQ: GDS), which owns a 35.6% stake in DayOne. GDS's shares have rallied about 46% in Hong Kong this year, boosting its market value to around $6.9 billion and drawing further attention to DayOne's growth trajectory. DayOne's existing investor roster already includes prominent names such as Boyu Capital, Hillhouse Investment, SoftBank Vision Fund, and Citadel CEO Ken Griffin.
The scale of this potential deal aligns with a wave of major transactions reshaping the global data center landscape, driven by the AI boom. Recent months have seen significant moves, including Bain Capital's agreement to sell its China data centers for about $4 billion in September and a consortium led by BlackRock's Global Infrastructure Partners striking a landmark $40 billion deal to acquire Aligned Data Centers in October. Against this backdrop, DayOne's pursuit of over $2 billion in fresh capital signals both the fierce competition for hyperscale assets and the shifting focus of global investors seeking to place strategic bets on the infrastructure underpinning the next phase of technological advancement.
Source: Yahoo
