DayOne Data Centers is planning to build two listings in the US and Singapore that could value the company up to $20 billion. This would represent a nearly 2x jump from its pre-IPO valuation of around $10 billion, which was based on a Series C round that closed at more than $2 billion.
From GDS International to DayOne
DayOne was previously known as GDS International, the offshore arm of GDS Holdings, one of China’s largest operating companies. The reorganization and restructuring of the company resulted in DayOne as an independent organization focusing on markets outside of China.
The company now operates data centers in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo, and Finland.
DayOne has raised $1.9 billion in two rounds of funding in 2024 alone, attracting checks from Coatue Management, Hillhouse Investment, SoftBank Vision Fund, Boyu Capital, and Ken Griffin, the founder of Citadel whose financial work has soared in the construction game.
GDS Holdings, the parent company, sold DayOne shares for $385 million in January. Even after it was sold, its residual value was valued at more than $2.2 billion.
Why two lists, and why now
The Singapore listing gives DayOne close proximity to its major markets and access to Southeast Asian corporate headquarters. The US index opens the door to the world’s deepest stock market, where data center stocks have been among the best performers of the past two years.
Finland’s work is an interesting wrinkle. The Nordic countries offer cheap, renewable energy and naturally cool climates, which significantly reduce the cost of running high-powered computing.
What does this mean for building a digital economy?
DayOne Singapore posts are very important. The city has positioned itself as Asia’s first hub for digital services, with the Monetary Authority of Singapore issuing licenses to a growing group of crypto companies.
Chinese companies that have registered in the US have come under increased scrutiny since the Holding Foreign Companies Accountable Act expanded the monitoring requirements. DayOne’s corporate restructuring and rebranding as an independent, non-Chinese entity appears to be designed in part to address those concerns.
With $2 billion in new capital and a list of blue-chip backers, DayOne has a paper worth waiting for the right market.
