Abu Dhabi's MGX Explores Acquisition of Singapore Data Center Firm DayOne

en.Wedoany.com Reported - Three sources said that Abu Dhabi-backed AI investor MGX has been exploring the acquisition of Singapore data center operator DayOne, marking a significant step in its global expansion into the tech sector. Two of the sources said MGX has partnered with an investment bank to prepare for a potential deal, though the sources declined to be identified due to the confidential nature of the discussions.

Reuters previously reported that DayOne has been planning a U.S. initial public offering with a target valuation of $20 billion. Two sources said MGX may be reluctant to match that price. The sources cautioned that the deal may not proceed, and the company could still opt for an IPO.

An MGX spokesperson declined to comment. DayOne did not immediately respond to a request for comment.

DayOne is affiliated with China's GDS Holdings and operates and develops data centers in Southeast Asia, as well as in Hong Kong, Japan, and Finland. Reuters reported last month that the company is considering a dual listing in Singapore and the U.S., though the Singapore plan has not yet materialized. DayOne has received investments from U.S. investors Coatue Management, SoftBank Vision Fund, and Ken Griffin, founder of Citadel Securities.

Acquiring DayOne could mark MGX's first acquisition in Asia, as the company pursues lightning-fast international expansion. Founded just over two years ago, MGX counts the $385 billion sovereign wealth fund Mubadala and AI company G42 as its founding partners. MGX falls under the jurisdiction of Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's National Security Advisor and brother of the president.

MGX aims to invest over $100 billion in assets across the entire AI value chain, including data centers and the powerful chips that run them. The UAE is pouring billions of dollars into this sector as part of its economic diversification efforts. The company has invested in some of the world's largest AI firms, including SpaceX's xAI, OpenAI, and Anthropic, and has invested in Aligned Data Centers through a $30 billion AI infrastructure fund involving BlackRock and Nvidia. Additionally, MGX has acquired a 15% stake in TikTok's U.S. business and spent $2 billion to buy a minority stake in Binance, the world's largest cryptocurrency exchange.

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