Abu Dhabis MGX Eyes Multi-Billion Deal for Singapore Data Centre Operator DayOne

Abu Dhabi-backed AI investment giant MGX is circling Singapore-based data centre operator DayOne for a potential multi-billion-dollar acquisition, three sources familiar with the discussions told Reuters. The deal would represent MGX's first major acquisition in Asia and a significant bet on Singapore's role as a regional data centre hub.

MGX, founded just over two years ago with backing from Abu Dhabi's $385 billion sovereign wealth fund Mubadala and AI company G42, has been working with an investment bank to prepare for the potential transaction. DayOne - which is affiliated with China's GDS Holdings and operates data centres across Southeast Asia, Hong Kong, Japan, and Finland - had been planning a U.S. initial public offering that could value the company at $20 billion. MGX may not be willing to match that valuation, the sources cautioned, and DayOne could still opt to pursue its IPO instead.

DayOne has already secured backing from a roster of heavyweight investors including U.S. hedge fund Coatue Management, SoftBank Vision Fund, and Citadel Securities founder Ken Griffin. The Singapore-based operator also recently explored a dual listing in Singapore and the U.S., though local exchange plans remain preliminary. A successful acquisition would give MGX a ready-made platform across multiple Asian markets at a time when demand for AI-optimised data centres is surging globally.

MGX, which falls under the purview of UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, is targeting over $100 billion in assets across the entire AI value chain - from data centres and chips to frontier model investments in OpenAI, Anthropic, and xAI. The firm has already deployed capital into a $30 billion AI infrastructure fund alongside BlackRock and Nvidia, and separately acquired stakes in TikTok's U.S. operations and Binance. A DayOne deal would add a Southeast Asian data centre footprint to that portfolio.

Why it matters for Singapore: Whether or not this particular deal closes, the fact that a Gulf-state AI heavyweight is circling a Singapore-founded operator underscores the city-state's emergence as a strategic node in the global AI infrastructure race. Singapore's data centre market - already one of the most developed in Southeast Asia - is increasingly attracting sovereign capital from the Middle East, a trend that will accelerate as demand for AI compute capacity continues to outstrip supply. For Singapore, hosting these facilities means deeper integration into the global AI supply chain, more high-value tech jobs, and a stronger hand in the regional competition for AI investment.