Abu Dhabi's MGX explores multi-billion dollar acquisition of data center operator DayOne

MGX Pursues Major Data Center Acquisition in Asia

Abu Dhabi's MGX has been exploring a multi-billion dollar acquisition of Singapore-based data center operator DayOne, according to three sources familiar with the matter1

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. The AI-focused investment firm has been working with an investment bank to prepare for the potential transaction, which would represent a significant milestone in its global expansion into AI infrastructure[2](https://economictimes.indiatata_id:ar-144764 --> mes.com/tech/technology/abu-dhabis-mgx-weighs-multi-billion-deal-for-data-centre-operator-dayone/articleshow/131869283.cms). However, sources cautioned that negotiations remain fluid, and data centre operator DayOne may still opt to pursue its planned initial public offering instead.

Valuation Gap Emerges Between Buyer and Target

The potential deal faces challenges around price expectations. DayOne has been planning a U.S. initial public offering targeting a valuation of $20 billion, a figure that MGX may not be willing to match, two sources indicated. DayOne, which is affiliated with China's GDS Holdings, operates and develops data centers across Southeast Asia as well as in Hong Kong, Japan and Finland3

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. The Singapore-based data center operator has secured investments from prominent backers including U.S. investor Coatue Management, SoftBank Vision Fund and Citadel Securities founder Ken Griffin2

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. Reuters reported last month that DayOne was considering a dual initial public offering in Singapore and the U.S., though the Singapore plans remain uncertain at this stage.

MGX's First Asian Deal Signals Eastward Ambitions

This would mark MGX's first acquisition in Asia as the company pursues lightning-fast international expansion. The firm was established just over two years ago with the $385 billion sovereign wealth fund Mubadala and AI company G42 as its founding partners3

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. MGX falls under the purview of Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and brother of the president. The potential acquisition aligns with UAE's economic diversification strategy, as the nation pours billions into becoming a major player in the AI ecosystem.

Building a $100 Billion AI Empire

MGX is targeting over $100 billion in assets investing across the whole AI chain, including data centers and the powerful AI chips that power them2

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. The firm has already invested in some of the largest AI companies globally including SpaceX's xAI, OpenAI and Anthropic. Through a $30 billion AI infrastructure fund that includes BlackRock and Nvidia, MGX has also invested in Aligned Data Centers3

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. Beyond AI infrastructure, the firm has acquired a 15% stake in TikTok's U.S. operations and invested $2 billion for a minority stake in the world's largest crypto exchange Binance2

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. Both MGX and DayOne declined to comment on the potential transaction, with sources emphasizing that discussions remain confidential and no final decision has been reached.