Chinese data centre firm GDS aims to raise over US$1 billion for international unit DayOne: sources

GDS is aiming to build up DayOne into an independently run and separately listed unit in the mid to long term

GDS Holdings, one of China’s largest data centre operators, is seeking to raise over US$1 billion in a new funding round for its international unit DayOne’s expansion, four people with knowledge of the matter said.

GDS Holdings has tapped new and existing shareholders for the series C fundraise, which will support the unit’s growth plans in South-east Asia and Europe, said the people, who declined to be named as the information was confidential.

GDS and DayOne did not immediately respond to Reuters’ requests for comment.

Shanghai-headquartered GDS established the international unit, which rebranded as DayOne in January, in Singapore in 2022 and has since raised about US$1.8 billion in total from two funding rounds in 2024, according to its announcements.

DayOne’s current investors include Hillhouse Investment, Boyu Capital and US investment firm Coatue Management as well as SoftBank Vision Fund, the announcements said.

New investors, including major global infrastructure funds and Middle Eastern sovereign wealth funds, were approached for the new fundraising round, the sources said.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

DayOne could be valued at between US$4 billion and US$5 billion in the funding round before new capital is injected, said two of the sources.

GDS is aiming to build up DayOne into an independently run and separately listed unit in the mid to long term, said one of the sources and a separate person with knowledge of its plans.

After the most recent US$1.2 billion series B funding round in December 2024, GDS ended up owning 35.6 per cent of the international unit, which was valued at around US$1.3 billion, equivalent to about US$6.75 per American Depositary Share of GDS, it said at the time.

SEE ALSO

GDS ceased consolidating the international unit following that round for accounting purposes and would not have the right to appoint the majority of its board directors, it said.

DayOne’s portfolio of assets comprised some 480 megawatts of data centre capacity in service and under construction and an additional 590 MW reserved for future development across strategic locations in Hong Kong, Singapore, Malaysia, Indonesia and Japan, according to GDS’s previous statement. REUTERS