Corrects headline and story to DayOne, not GDS, to raise capital, adds clarification in 3-4, 11
DayOne could see $4 billion to $5 billion valuation, sources say
DayOne eyes independent listing in future, sources say
By Kane Wu and Yantoultra Ngui
HONG KONG/SINGAPORE, Oct 16 (Reuters) - DayOne, a global data centre operator affiliated with GDS Holdings GDS.O 9698.HK, one of China's largest data centre operators, is seeking to raise over $1 billion in a new funding round, four people with knowledge of the matter said.
DayOne has tapped new and existing shareholders for the series C fundraise, 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 confirmed the equity fundraising via email late on Thursday, clarifying that the effort is independent of GDS.
Reuters reported earlier that GDS was raising capital for DayOne, its international unit. DayOne did not comment on the fundraising details. GDS did not respond to Reuters' requests for comment.
DAYONE COULD BE VALUED AT BETWEEN $4 BILLION AND $5 BILLION
Shanghai-headquartered GDS established the international unit, which rebranded as DayOne in January, in Singapore in 2022 and has since raised about $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 U.S. 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.
DayOne could be valued at between $4 billion and $5 billion in the funding round before new capital is injected, said two of the sources.
GDS is aiming 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.
DayOne said in the email it is not part of GDS's corporate structure and operates under a distinct ownership and governance framework, with its own management team, board and investors.
After the most recent $1.2 billion series B funding round in December 2024, GDS ended up owning 35.6% of the international unit, which was valued at around $1.3 billion, equivalent to about $6.75 per American Depositary Share of GDS, it said at the time.
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.
(Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Joe Bavier)
((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging: kane.wu.thomsonreuters.com@reuters.net))