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SG data center firm DayOne said to seek up to $4b in funding
Singapore-based data center operator DayOne Data Centers is considering increasing its series C round to more than US$4 billion amid strong demand for AI infrastructure, according to a people familiar with the matter.
They said the target would be about double the size of a January close and would be backed mostly by existing investors.
DayOne, formerly known as GDS International, is focused on completing the round before deciding on a US IPO and is also weighing a dual listing in the US and Singapore.
The company is also discussing a roughly US$1 billion revolving credit facility with banks after raising more than US$2 billion in January in a round led by Coatue Management.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
DayOne lines up equity and loans
- DayOne may raise its series C to more than US$4 billion, part of a wider financing plan rather than one standalone round 1.
- It is also trying to lift an existing loan facility from about US$3.4 billion to as much as US$7 billion to fund growth in Malaysia 2.
AI demand lifts data centers into strategic territory
- Across the sector, Stack Infrastructure, a data center developer and operator, and CoreWeave, a cloud computing provider focused on AI workloads, are also raising billions to keep up with AI demand 2.
- That buildout rests on winning long-term deals with well-funded customers such as Microsoft, Google and Amazon 2.
- Backing from sovereign wealth funds including the Indonesia Investment Authority, Indonesia’s state-backed investment fund, suggests some governments treat digital infrastructure as a strategic asset class 3.
- Regional data center investments can help governments expand local digital capacity and share in wider AI spending growth 3.
