DayOne Data Centres Weighs Downsizing US IPO to US$2.5B–$3B Amid Market Volatility
Singapore-based DayOne Data Centers is considering delaying or scaling back its planned US initial public offering to raise between US$2.5 billion and US$3 billion, down from an earlier target of US$5 billion. The move comes amid rising volatility in the data centre sector following the failed IPO o
Singapore-based DayOne Data Centers is weighing a delay or a downsizing of its planned US initial public offering, with the company and its backers exploring options to raise between US$2.5 billion and US$3 billion, according to people familiar with the matter. The listing was previously expected to bring in as much as US$5 billion.
DayOne has been waiting for a favourable window to launch the IPO as volatility around data centre stocks increases globally. The potential offering comes in the wake of challenges to data centre valuations, including the failed float of Sydney-based Firmus Technologies last week.
Firmus, which builds AI factories, pulled its A$5 billion (US$3.5 billion) ASX listing after investors including Blackstone, Coatue and Jane Street declined to bid for more shares. The company has since opened talks for Nvidia to invest at least A$500 million (US$350.7 million), with chief Oliver Curtis reportedly flying to Berlin for an emergency meeting with Nvidia boss Jensen Huang. Nvidia already holds equity in Firmus, which plans AI facilities across Australia, Malaysia and Indonesia.
Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), is gathering information about Firmus Grid’s failed IPO but has not opened a formal investigation. ASIC Head of Enforcement Chris Savundra said on Tuesday that the agency is making enquiries “in the usual course”. ASIC Chief Executive Officer Scott Gregson told a parliamentary committee on artificial intelligence that the agency has a limited role in listings.
Separately, Tokyo residents opposed to a GLP Japan logistics and data centre complex in Akishima, western Tokyo, have formed a group to sue the developer and halt the project. The planned development includes three logistics buildings and eight data centre buildings. Residents say it would threaten wildlife, drain water and cause pollution. The group expects to file a civil case this year, which would be Japan’s first civil lawsuit against a data centre operator.
In other news, Singapore-founded neocloud operator Aolani has signed letters of intent to take up 500 MW of AI data centre capacity across several sites in Malaysia, with the capacity set to come online from the second half of 2027. The non-binding agreements would lift Aolani’s committed Malaysian capacity to up to 580 MW by 2027, from about 80 MW this year.
