Singapore data centre operator DayOne opts for US IPO at likely US$20 billion valuation

[SINGAPORE] Singapore-headquartered DayOne Data Centers filed for a proposed Nasdaq initial public offering in the US on Tuesday (Oct 6), joining the wave of AI and AI-related companies that are tapping the public equity markets.

While the number of American depositary shares to be offered and the price range for the proposed offering are not confirmed, Reuters reported in February that the company was aiming to raise as much ​as US$5 billion at a potential valuation of US$20 billion.

DayOne develops and operates data centres for cloud computing and artificial intelligence customers, providing space, power, cooling ​and connectivity, primarily under long-term contracts.

Earlier media reports noted that DayOne was considering a concurrent Nasdaq-SGX dual listing.

Even though there was no such mention in the prospectus, The Business Times understands that a subsequent listing on the SGX has not been ruled out.

The data centre operator is part of a wave of companies in the sector eyeing IPOs in the near future.

Given investor interest in the AI sector, many companies have announced IPO plans. Apart from the well-publicised candidates Anthropic and OpenAI, there is also data centre operator Switch, which is seeking a valuation approaching US$50 billion including debt. Another is London-based AI cloud provider Nscale, with a valuation of US$35 billion, according to Reuters.

In Asia, China’s Deepseek is aiming to list in Shanghai next year while Moonshot AI is eyeing the Hong Kong exchange.

DayOne reported US$512 million in revenue for the six months ended Jun 30, more than three times the US$151.5 million in the same period the previous year.

Net loss stood at US$81.9 million for the same period, compared with the US$13.5 million loss for the year-ago period, according to its prospectus.

The company has a global presence in markets such as Singapore, Japan, Thailand, Spain and Finland; it was one of four recipients to be awarded capacity in the city-state’s pilot Data Centre – Call for Application programme in 2023.

In H1, 87 per cent of DayOne’s revenue was derived from Malaysia. The company has 10 customers in Johor, with about 1.4 gigawatts (GW) of bookings.

The operator reported a total booking capacity of 2.3 GW as at Sep 20, and its largest customer – an unnamed tech company with a leading short-form video platform – accounted for 69.2 per cent of H1 revenue.

“Our business and growth prospects significantly depend on a limited number of global hyperscale customers, and we may not succeed in diversifying our customer base,” it said.

DayOne will use net proceeds from the IPO for the development and construction of new data centre projects, as well as for working capital and other general corporate purposes.

Through the offering, the data centre operator is also looking to increase its financial flexibility and capitalisation, which stands at US$11.2 billion, it noted in the prospectus filing.

“We do not expect to pay dividends in the foreseeable future,” it added.

BT has reached out to DayOne for comments.

Milestone for the ex-GDS subsidiary

The upcoming listing represents a milestone for DayOne, which began as a subsidiary of Shanghai-based GDS Holdings.

GDS, one of China’s largest carrier-neutral data centre operators, established the international unit in Singapore in 2022 to lead its expansion outside mainland China.

The prospectus also revealed that two of DayOne’s existing customers have been designated as “Chinese military companies” by the US Department of War.

The operator did not reveal the identity or revenue contribution of the two customers, but noted that its business operations could be affected if customers and suppliers are added to sanctions or export controls.

In late 2024, GDS’ stake in the business was diluted to 35.6 per cent from 52.7 per cent, following a US$1.2 billion Series B funding round.

In January 2025, the separated entity rebranded from GDS International to DayOne. It now operates under a distinct ownership and governance framework.

Prior to the IPO filing, DayOne had tapped investors for a Series C fundraising round in June, raising US$4.5 billion to further support its growth plans.

GDS’ shareholding in DayOne has been reduced to 19.4 per cent since the latest fundraising and share buyback. It is now the company’s third-largest shareholder after investment management firm Coatue and private equity player Hillhouse.

Since 2024, DayOne has raised more than US$6 billion in equity financing, backed by a formidable roster of global investors. Others include the SoftBank Vision Fund, Indonesia Investment Authority, Achi Capital, Boyu Capital and Baupost Group.