By Kane Wu and Yantoultra Ngui
HONG KONG/SINGAPORE (Reuters) -DayOne, a global data centre operator affiliated with GDS Holdings, one of China’s largest data centre operators, is seeking to raise more than $1 billion in a new funding round, four people with knowledge of the matter said.
DayOne, formerly known as GDS International, has tapped new and existing shareholders for the series C fundraising, which will support its growth plans in Southeast Asia and Europe, said the people, who declined to be named as the information was confidential.
DayOne could be valued at $4 billion to $5 billion in the funding round before new capital is injected, two of the sources said.
New investors, including major global infrastructure funds and Middle Eastern sovereign wealth funds, were approached for the new round, the sources said.
DayOne confirmed the equity fundraising via email late on Thursday, clarifying that the effort was independent of GDS.
Reuters previously reported that GDS was raising capital for DayOne, its international unit. DayOne did not comment on the fundraising details. GDS did not respond to requests for comment.
DAYONE SEPARATED FROM GDS
Shanghai-based GDS established GDS International in Singapore in 2022, which was rebranded as DayOne in January after its separation from the parent company.
The international business has raised a total of about $1.8 billion from two funding rounds in 2024, according to GDS statements.
Singapore-based DayOne’s current investors include Hillhouse Investment, Boyu Capital, U.S. investment firm Coatue Management and the SoftBank Vision Fund, the statements said.
GDS was seeking to build up DayOne and list it separately in the mid- to long-term, said one of the sources and a separate person with knowledge of its plans.
In its email on Thursday, DayOne said GDS is one of its founding investors but DayOne is not part of GDS’s corporate structure and it operates under a distinct ownership and governance framework, with its own management team, board and investors.
GDS founder, chairman and chief executive William Huang is also chairman of DayOne, according to DayOne’s website.
After the $1.2 billion series B funding round in December 2024, GDS’s stake in DayOne was diluted to 35.6% from 52.7%, which valued it at around $1.3 billion, equivalent to about $6.75 per American Depositary Share of GDS, it said at the time.
GDS deconsolidated the international unit following that round for accounting purposes, recognising it as an equity investee, it said, adding that it would not have the right to appoint the majority of its board directors.
DayOne’s portfolio of assets included some 480 megawatts of data centre capacity that are in service or under construction and an additional 590 MW reserved for future development across strategic locations in Hong Kong, Singapore, Malaysia, Indonesia and Japan, GDS has said.
In August, DayOne unveiled a 1.2 billion euro ($1.4 billion) investment in a hyperscale data centre campus in Lahti, Finland, marking its first entry into Europe.
(Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Joe Bavier and Thomas Derpinghaus.)
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