Abu Dhabi’s MGX Weighs Multi-Billion Deal for Singapore-Based Data Centre Operator DayOne: Sources

Why It Matters

The deal would give the UAE‑linked fund a foothold in the fast‑growing Asia‑Pacific data‑centre market, accelerating its goal of managing over $100 billion in AI‑related assets. It also signals heightened competition for strategic infrastructure assets amid global AI spending spikes.

Key Takeaways

• MGX may acquire DayOne in a potential multi‑billion deal
• DayOne targets $20 billion US IPO valuation
• Deal would be MGX’s first Asian acquisition
• MGX aims to manage over $100 billion AI assets
• DayOne backed by Coatue, SoftBank Vision Fund, Ken Griffin

Pulse Analysis

MGX, the artificial‑intelligence investment arm backed by Abu Dhabi’s sovereign wealth fund Mubadala and AI firm G42, has spent the past two years building a $100 billion‑plus portfolio that spans cutting‑edge models, chip makers and critical infrastructure. Its recent moves—ranging from a 15% stake in TikTok’s U.S. operations to a $2 billion minority investment in Binance—reflect a broader UAE strategy to diversify away from oil by anchoring itself in the global AI supply chain. An acquisition of DayOne would extend MGX’s reach into the data‑centre segment, a cornerstone of AI workloads that requires massive, low‑latency compute capacity.

DayOne, founded in Singapore, has rapidly expanded its footprint across Southeast Asia, Hong Kong, Japan and Finland, positioning itself as a regional hub for hyperscale cloud providers and enterprise customers. Backed by heavyweight investors such as Coatue Management, SoftBank Vision Fund and Ken Griffin, the company is eyeing a U.S. IPO that could fetch a $20 billion valuation—one of the largest listings for a data‑centre operator in recent years. Its affiliation with China’s GDS Holdings adds a layer of geopolitical nuance, as Western and Asian investors weigh regulatory and market risks while seeking exposure to the booming demand for edge and core data‑centre capacity.

If MGX proceeds with the acquisition, the transaction would underscore the accelerating race among sovereign wealth funds and private capital to secure strategic digital infrastructure. For the Asian market, a UAE‑led entry could bring fresh capital, advanced AI integration, and potential synergies with MGX’s existing AI‑focused assets. Conversely, a failed deal may push DayOne toward a high‑profile IPO, offering public investors a rare chance to tap into the region’s data‑centre growth story. Either outcome will reshape competitive dynamics and could set a precedent for future cross‑border infrastructure deals in the AI era.