DayOne eyes $1 billion+ funding at up to $5 billion valuation to expand data centers across Asia and Europe

DayOne, the global data center startup spun out from GDS Holdings, is raising more than $1 billion in a fresh funding round that could value the company between $4 billion and $5 billion, Reuters reported, citing people familiar with the matter.

The Singapore-based operator, previously known as GDS International, has reached out to both new and existing investors for its Series C round to fuel expansion across Southeast Asia and Europe. Those close to the deal said major global infrastructure funds and Middle Eastern sovereign wealth funds have been approached to participate.

DayOne confirmed the fundraising effort in an email to Reuters late Thursday, emphasizing that the round is being conducted independently of GDS. That distinction marks a new chapter for the company, which rebranded in January after separating from its Chinese parent. Reuters had earlier reported that GDS was raising capital for its international arm, though DayOne clarified that it now operates with its own ownership and governance structure.

Founded in 2022 in Singapore by GDS, DayOne has already secured about $1.8 billion across two previous funding rounds in 2024. Its backers include Hillhouse Investment, Boyu Capital, Coatue Management, and SoftBank’s Vision Fund — a lineup that signals strong institutional confidence in the company’s cross-border ambitions.

GDS founder, chairman, and CEO William Huang also serves as DayOne’s chairman, but GDS’s influence has waned as its stake dropped from 52.7% to 35.6% following DayOne’s $1.2 billion Series B round in December 2024. That deal valued DayOne around $1.3 billion and led GDS to deconsolidate the unit from its financial statements, treating it as an equity investment instead, Reuters reported.

DayOne’s footprint has grown quickly. The company now controls about 480 megawatts of data center capacity across Hong Kong, Singapore, Malaysia, Indonesia, and Japan, with another 590 MW reserved for future developments. In August, DayOne announced a €1.2 billion ($1.4 billion) hyperscale campus in Lahti, Finland — its first foray into Europe and a signal of its broader global ambitions.

With demand for digital infrastructure surging and cloud providers seeking new capacity outside China, DayOne’s timing looks strategic. The company’s next raise could cement its place among the rising global players racing to meet data demand from AI, cloud, and enterprise clients.

DayOne’s message is clear: it’s building for scale, independence, and global reach — from Asia’s data clusters to Europe’s growing hyperscale corridors.