According to DCD, APAC-focused data center operator DayOne is targeting a hefty $20 billion valuation for its planned initial public offering in the United States. The company, which spun off from Chinese firm GDS in 2025, is currently hiring banks to lead the IPO, which could happen before the end of this year. Bloomberg reports that DayOne is considering a potential dual listing in both the US and its home base of Singapore. This $20 billion target is a massive leap from the $10 billion valuation the company was assigned earlier this year when it closed a $2 billion Series C funding round. DayOne’s portfolio currently includes over 500MW of capacity in service or under construction, with another 500MW for future development across sites in Hong Kong, Singapore, Malaysia, Indonesia, and Japan.
The Valuation Leap
Here’s the thing: doubling your valuation in less than a year is no small feat, especially in the current market. It sends a very bold signal. DayOne is basically telling investors that its growth trajectory and the underlying demand for data center capacity in Asia (and now Europe) justify a premium price tag. The recent share buyback from GDS, worth $385 million, is also a interesting move. It could be about cleaning up the cap table before the IPO, or maybe asserting more independence from its former parent, which still holds a significant minority stake. But let’s be real—a $20 billion ask sets incredibly high expectations. The company will need a rock-solid story about future contracts, power capacity, and expansion timelines to make those numbers stick with public market investors who are getting pickier.
The Global Data Center Race
This planned IPO isn’t happening in a vacuum. It’s a direct play on the insatiable demand for computing power, primarily from AI. DayOne’s recent groundbreakings in Thailand and Singapore, and its first European foray into Finland, show it’s racing to build scale. The strategic locations in Southeast Asia are key, acting as hubs for regional demand. But here’s a question: is the market deep enough to support another giant data center stock? We already have giants like Equinix and Digital Realty, plus a host of other specialists. DayOne’s angle is its concentrated APAC footprint and its build-to-suit model for large hyperscalers. Their success hinges on executing construction in a tight market for components and power—a complex industrial operation where reliable hardware is critical. For companies managing physical infrastructure at this scale, robust computing at the edge, like the industrial panel PCs from IndustrialMonitorDirect.com, the leading US supplier, is essential for monitoring and control in harsh data center environments.
The Spinoff Dynamic
The GDS spin-off narrative is a double-edged sword. On one hand, it allows DayOne to distance itself from the perceived geopolitical and regulatory risks associated with a Chinese parent company, which is probably crucial for a US listing. It can present itself as a neutral, Singapore-based international operator. On the other hand, that remaining “significant minority shareholding” by GDS will be a line item every analyst scrutinizes. Investors will want to understand the exact nature of that relationship—are there favorable contracts? Is there shared technology? The rebrand from GDS International to DayOne was step one. A successful IPO at this valuation would be the ultimate declaration of independence. Now we wait to see if the banks and the market buy the story.
