Abu Dhabi's MGX considers buying DayOne data center

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Abu Dhabi’s MGX considers buying DayOne data center

June 20, 2026

DUBAI,— MGX, the Abu Dhabi-backed artificial intelligence investor firm, is exploring a potential acquisition of Singapore-based data center operator DayOne, according to three sources familiar with the matter told Reuters.

The move would represent a significant step in MGX’s international expansion strategy within the technology sector.

Two of the sources said MGX has been working with an investment bank as it prepares for a possible transaction. The individuals requested anonymity because the discussions are private and have not been publicly disclosed.

DayOne has been pursuing plans for a U.S. initial public offering that would seek a valuation of about $20 billion, Reuters previously reported. Two sources said MGX may be unwilling to meet that valuation level.

The sources noted that negotiations remain uncertain and may not result in an agreement. They added that DayOne could still proceed with its public listing plans.

A spokesperson for MGX declined to comment on the discussions.

DayOne is affiliated with China’s GDS Holdings and develops and operates data centers throughout Southeast Asia, as well as in Hong Kong, Japan and Finland.

Reuters reported last month that the company was evaluating a dual initial public offering in Singapore and the United States, although plans for a Singapore listing have not yet been finalized.

The company has received support from U.S. investors Coatue Management, SoftBank Vision Fund, and Ken Griffin, the founder of Citadel Securities.

A transaction involving DayOne would potentially become MGX’s first acquisition in Asia. The investment firm was established just over two years ago by the $385 billion sovereign wealth fund Mubadala and artificial intelligence company G42, which serve as its founding partners.

MGX operates under the oversight of Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of the country’s president.

The company is seeking to build assets exceeding $100 billion through investments spanning the artificial intelligence supply chain, including data centers and advanced semiconductor technology.

The United Arab Emirates has committed billions of dollars to the sector as part of broader efforts to diversify its economy.

MGX has invested in major artificial intelligence companies, including SpaceX’s xAI, OpenAI and Anthropic.

It has also invested in Aligned Data Centers through a $30 billion AI infrastructure fund that includes BlackRock and Nvidia.

Separately, MGX acquired a 15% stake in TikTok’s U.S. operations and invested $2 billion for a minority stake in cryptocurrency exchange Binance.

Separately, the billionaire founder of Dubai-based real estate firm DAMAC Properties is turning his focus toward artificial intelligence infrastructure, investing tens of billions of dollars in data centers across three continents in a bid to become a dominant global player in the sector.

(With files from Reuters)