Singapore data center operator DayOne explores $500m bond

Singapore-based data center operator DayOne Data Centers has engaged in preliminary discussions with banks concerning a potential US$500 million bond sale, according to individuals familiar with the matter. The company reportedly filed for an initial public offering in the U.S. this week, having previously considered raising approximately US$5 billion.

Citigroup is reportedly serving as the lead arranger for the bond sale, which could occur as early as next year. This development follows news that project partner Firmus Grid has dropped its planned Australian listing.

Proceeds from the bond issuance are slated to fund unspecified projects. DayOne and Firmus Grid are jointly developing a 360-megawatt Nvidia AI factory located in Batam, Indonesia.

In June, DayOne, formerly known as GDS International, announced the final closing of its Series C equity financing round, which secured US$4.5 billion.