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AI Giant MGX Eyes Data Center Buyout
20 Jun
Summary
- MGX explores acquisition of Singapore data center operator DayOne.
- DayOne reportedly seeks $20 billion valuation for potential IPO.
- Deal could mark Abu Dhabi's MGX first Asian expansion.
Abu Dhabi's AI investment firm MGX is reportedly in discussions to acquire Singapore-based data center operator DayOne. This move would represent a significant stride in MGX's rapid international expansion.
MGX, established just over two years ago, aims to invest over $100 billion across the AI sector. It has already made substantial investments in global AI leaders like OpenAI and Anthropic, as well as SpaceX's xAI.
DayOne, affiliated with China's GDS Holdings, operates data centers in Asia, Hong Kong, Japan, and Finland. The company has previously secured investments from prominent firms including Coatue Management and SoftBank Vision Fund.
Sources indicate that MGX is working with an investment bank for the potential transaction. However, a deal is not assured, as DayOne has been preparing for a U.S. initial public offering with a target valuation of $20 billion, a figure MGX may find too high. The possibility of DayOne proceeding with its IPO remains.
