Singapore-based data center operator DayOne Data Centers has filed for an initial public offering in the United States, seeking to tap investor demand for AI and cloud infrastructure at a time when higher bond yields and elevated interest rates are making the IPO market more difficult.
The company disclosed a net loss of $77.2 million on revenue of $512 million for the six months ended June 30, compared with a net loss of $12.6 million on revenue of $151.5 million in the same period a year earlier. The sharp increase in revenue was accompanied by a much larger loss, highlighting the heavy capital requirements involved in expanding data-center capacity.
DayOne did not disclose the size or pricing of the offering in its filing. Reuters reported in February that the company was targeting a raise of as much as $5 billion at a potential valuation of about $20 billion. If that target is achieved, the listing would rank among the more significant US technology infrastructure IPOs and provide a fresh test of how public-market investors are valuing data-center assets amid the artificial intelligence investment boom.
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The filing comes as the broader US IPO market faces a less favorable backdrop. Rising Treasury yields have increased the cost of capital and reduced the relative appeal of growth companies whose valuations depend heavily on future earnings. Several major listings have been postponed as companies reassess market conditions and investor demand.
For DayOne, the timing puts the company at the intersection of two opposing forces. Demand for data-center capacity is accelerating as cloud providers and AI companies expand their computing infrastructure, but the facilities require enormous amounts of capital, electricity, water, and land. Financing costs have therefore become an increasingly important consideration for operators seeking to build capacity quickly.
DayOne develops and operates data centers serving cloud-computing and artificial intelligence customers. Its facilities provide customers with space, power, cooling and connectivity, primarily through long-term contracts that can provide more predictable revenue as capacity comes online.
The company operates across the Asia-Pacific region and Europe, with facilities and projects spanning Malaysia, Indonesia, Thailand, Hong Kong, Japan, Finland and Spain. Its origins are tied to Shanghai-based GDS Holdings, which established GDS International in Singapore in 2022. The business was separated from its parent and rebranded as DayOne in January 2025, positioning it as an independent data-center platform focused on international markets.
DayOne plans to use proceeds from the IPO to fund the development and construction of new data-center projects, as well as working capital and other general corporate purposes. That capital-intensive expansion strategy is central to the investment case.
AI models and cloud services require increasing amounts of computing power, driving demand for data-center capacity and creating opportunities for operators with access to power, land and suitable connectivity. Long-term customer contracts can also give operators greater visibility over future revenue.
But the financial results show the cost of capturing that opportunity. Revenue more than tripled year over year in the first half, yet the company’s net loss widened substantially. Investors will therefore have to assess whether DayOne can translate rapid top-line expansion and new capacity into sustainable cash flow while maintaining access to affordable financing.
The industry’s infrastructure demands are also becoming a growing source of scrutiny. Data centers consume large quantities of electricity and water and require substantial amounts of land. In some markets, communities and regulators have raised concerns about the pressure large facilities can place on electricity grids, utility bills, and local resources.
Those concerns could become more significant as AI-related data-center construction accelerates. Operators increasingly need to secure power availability alongside land and financing, making access to electricity a critical constraint on expansion.
DayOne’s proposed Nasdaq listing under the symbol “DODC” will thus offer investors a direct opportunity to assess the economics of international data-center infrastructure at a pivotal point for the industry.
Morgan Stanley, J.P. Morgan, BofA Securities and Citigroup are among the underwriters for the offering. The eventual size and valuation of the IPO will provide an important signal of how public investors are pricing data-center companies after the sector’s rapid expansion on the back of the AI boom.