DayOne Weighs Delaying or Downsizing US IPO as Data Center Volatility Mounts

Singapore-based DayOne Data Centers Ltd. is evaluating options for its planned US initial public offering, including a potential delay or a reduced offering size, as market volatility around the data center sector intensifies, according to people familiar with the matter.

The company, whose backers include Coatue and Hillhouse, has been waiting for the right window to launch its listing but is now also considering pushing the share sale back until market conditions recover, the people said. Alternatively, DayOne could proceed with a smaller offering that may raise between $2.5 billion and $3 billion — roughly half of the $5 billion it had originally targeted, with the company previously eyeing a valuation of approximately $20 billion.

DayOne is continuing to engage with potential investors and still intends to move forward as soon as the market allows, according to the people, who asked not to be identified because the deliberations are private. The company declined to comment. No final decisions have been made, and DayOne could still opt to proceed with the offering in the coming weeks, the people added.

The deliberations underscore the pressure that recent turbulence across the data center industry is placing on capital-raising plans, even for well-backed operators. A successful listing at the upper end of DayOne's original ambitions would have ranked among the larger US IPOs of the year, and any downsizing or delay would signal that public-market investors are growing more cautious about the sector's rapid buildout and its associated costs. For now, DayOne's path to the public markets remains contingent on a stabilization in sentiment toward data center assets.