MGX weighs DayOne data centre push

Abu Dhabi-backed artificial intelligence investor MGX has explored a potential acquisition of Singapore-based data centre operator DayOne, a move that would deepen the emirate’s push into global digital infrastructure as demand for computing capacity accelerates across Asia, Europe and the United States.

The discussions remain preliminary and may not lead to a transaction. DayOne has also been preparing for a possible public listing that could value the business at about $20 billion, creating a gap between market expectations and the price a strategic buyer may be willing to pay. People familiar with the matter said MGX has been working with an investment bank as it assesses the opportunity, though DayOne may still proceed with an initial public offering.

A deal would rank among the most ambitious outbound technology moves by MGX, which was launched in 2024 with backing from Mubadala and G42 to invest in artificial intelligence infrastructure, semiconductors and core AI technologies. The firm has become central to Abu Dhabi’s plan to position itself as a long-term capital provider for the global AI economy, where data centres, power supplies and advanced chips have become strategic assets.

DayOne, headquartered in Singapore, operates hyperscale data centre infrastructure for large cloud and enterprise customers. It emerged from the international business of GDS Holdings and was rebranded as an independent platform at the start of 2025. The company has expanded across markets including Singapore, Johor, Batam, Hong Kong, Japan, Thailand and Finland, giving it a footprint in regions where hyperscale capacity is constrained by land, power and permitting pressures.

The company raised more than $2 billion in Series C financing in January and later expanded that round, drawing capital from investors including Coatue, Indonesia Investment Authority and other institutional backers. Earlier funding rounds brought in investors such as SoftBank Vision Fund, Hillhouse, Boyu Capital, Citadel founder Ken Griffin, Coatue and Baupost. GDS has remained a minority shareholder after its stake was diluted through external fundraising.

DayOne’s planned listing has attracted attention because it could be one of the largest data centre-related offerings from a Singapore-based platform. A dual-track process would allow the company to weigh acquisition interest against equity market conditions. The timing is sensitive, as investors have been rewarding digital infrastructure groups tied to AI workloads while also scrutinising valuations, leverage and long-term power costs.

Data centres have become a priority for sovereign investors, private equity firms and infrastructure funds as artificial intelligence models require larger computing clusters and more reliable energy supplies. Global demand has shifted from conventional cloud capacity to high-density facilities capable of supporting graphics processing units, liquid cooling systems and advanced networking. That change has increased the strategic value of operators with land banks, grid access and established relationships with hyperscale customers.

MGX’s interest reflects a broader Gulf strategy to move beyond passive technology stakes and acquire assets embedded in the AI supply chain. Abu Dhabi has backed major AI partnerships involving G42, Microsoft, OpenAI and global infrastructure investors. The Stargate UAE project, announced as a large AI data centre cluster in Abu Dhabi, includes a first phase expected to bring 200 megawatts online in 2026, while wider plans envisage a one-gigawatt facility.

Buying DayOne would give MGX exposure to Asia-Pacific growth markets where data centre demand is rising but new supply faces physical and regulatory limits. Singapore has tightened controls on data centre expansion because of energy and land constraints, pushing operators to develop regional clusters in neighbouring Malaysia and Indonesia. DayOne’s SIJORI strategy, spanning Singapore, Johor and Batam, is built around that regional capacity model.

The possible transaction also carries execution risks. DayOne’s valuation ambitions are high, and a $20 billion benchmark would require confidence in future contracted demand, financing conditions and power availability. Cross-border scrutiny could also be a factor because DayOne originated from a China-linked platform, even though it is now Singapore-headquartered and separately funded by international investors.

For MGX, any move would have to fit its mandate to build large-scale exposure to AI infrastructure rather than simply chase data centre multiples. The firm’s backers have the financial capacity to pursue multibillion-dollar deals, but the sector is becoming crowded, with global infrastructure funds, pension funds and strategic technology investors competing for the same assets.