Abu Dhabi’s artificial intelligence investment firm, MGX, is exploring a potential acquisition of Singapore-based data center operator DayOne, according to sources familiar with the matter. The move, which could value DayOne at as much as $20 billion, signals a significant step in the UAE-based company’s rapid global expansion into critical AI infrastructure.
Quick Facts
- Potential deal targets a $20 billion valuation.
- Would mark MGX’s first major acquisition in Asia.
- DayOne operates data centers across Asia and Europe.
Securing Global AI Infrastructure
Negotiations are reportedly ongoing, with MGX working with an investment bank on the potential transaction. A successful acquisition would be one of MGX’s largest bets on the foundational infrastructure supporting the global AI economy.
The interest comes as data centers become one of the most competitive and sought-after asset classes in the tech sector. Gulf investment funds increasingly view ownership of this infrastructure as a strategic play to solidify the region’s role in the worldwide digital economy, driven by the massive demand for computing power to train and deploy advanced AI models.
DayOne’s IPO Plans and Global Footprint
DayOne, which is affiliated with China’s GDS Holdings, operates and develops data centers across Southeast Asia, Hong Kong, Japan, and Finland. The company has attracted backing from major global investors, including Coatue Management, SoftBank Vision Fund, and Citadel Securities founder Ken Griffin.
Prior to the acquisition talks, DayOne had been planning a U.S. initial public offering targeting a $20 billion valuation and was also considering a dual listing in Singapore. Sources suggested that MGX may be hesitant to match the valuation DayOne is aiming for through public markets, though a deal has not been ruled out.
MGX: Abu Dhabi’s $100B AI Investment Powerhouse
Established in 2024 by Abu Dhabi’s sovereign wealth fund Mubadala and AI company G42, MGX is on a mission to build a portfolio with over $100 billion in assets. The firm falls under the purview of Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.
MGX focuses on investing across the entire AI value chain, from data centers to the advanced chips that power them. The company has already made significant investments in top AI firms like OpenAI, Anthropic, and Elon Musk’s xAI. It is also a partner in a $30 billion AI infrastructure fund alongside BlackRock and Nvidia. Beyond core AI, MGX has also acquired a stake in TikTok’s U.S. operations and committed $2 billion to the crypto exchange Binance.
About MGX
MGX is an Abu Dhabi-based technology investment company created by Mubadala and G42. Launched in 2024, the firm aims to accelerate the development and adoption of AI and advanced technologies by investing across three main areas: AI infrastructure, AI models and applications, and AI services and industries. MGX is targeting over $100 billion in assets under management.
Source: Jawlah
