Abu Dhabi-backed artificial intelligence investment firm MGX has been quietly looking into purchasing Singapore-based data centre company DayOne, according to three people familiar with the matter, in what could represent a significant milestone in its worldwide technology expansion.
Two of those sources, who requested anonymity due to the sensitive nature of the discussions, said MGX has enlisted an investment bank to help prepare for a possible transaction.
Reuters has previously reported that DayOne has been eyeing a U.S. initial public offering with a target valuation of around $20 billion — a figure that MGX may be reluctant to meet, according to two of the sources. All three cautioned that negotiations could fall apart and that DayOne may ultimately choose to go the IPO route instead.
A spokesperson for MGX declined to offer any comment on the matter. DayOne did not respond to requests for comment.
DayOne is affiliated with China’s GDS Holdings and runs data centre operations across Southeast Asia, as well as in Hong Kong, Japan, and Finland. Last month, Reuters reported the company was weighing a dual stock listing in both Singapore and the United States, though the Singapore portion of those plans remains uncertain.
Among DayOne’s notable investors are U.S. investment firm Coatue Management, SoftBank Vision Fund, and Citadel Securities founder Ken Griffin.
If completed, an acquisition of DayOne would mark MGX’s first deal in Asia as the firm pursues a rapid global expansion. MGX was established just over two years ago, with the $385 billion sovereign wealth fund Mubadala and AI company G42 as its founding partners.
MGX operates under the authority of Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of the country’s president.
The firm has set its sights on accumulating more than $100 billion in assets spread across the full artificial intelligence supply chain — from data centres to the advanced chips that power them — as the UAE channels billions of dollars into the sector to diversify its economy.
MGX has already placed investments in some of the world’s most prominent AI companies, including SpaceX’s xAI, OpenAI, and Anthropic. It has also participated in Aligned Data Centers through a $30 billion AI infrastructure fund that counts BlackRock and Nvidia among its participants.
In separate moves, MGX has acquired a 15% stake in TikTok’s U.S. operations and committed $2 billion for a minority ownership position in Binance, the world’s largest cryptocurrency exchange.
