Singapore-based DayOne Data Centers is weighing a delay or a $2.5 billion to $3 billion size cut for its planned New York initial public offering amid mounting volatility across the global digital infrastructure sector.
DayOne Weighs IPO Size Cut and Potential Delay Amid Sector Volatility
DayOne Data Centers is reevaluating the timeline and scale of its upcoming US initial public offering as market headwinds pressure data center valuations globally. While the Singapore-based operator had originally aimed to raise as much as $5 billion as early as the fourth quarter with a target valuation of about $20 billion, deliberations are ongoing as executives and backers weigh alternative structures.
The company is considering moving forward with a smaller listing that would capture $2.5 billion (S$3.2 billion) to $3 billion, according to people familiar with the matter. DayOne is backed by prominent investors including Coatue, Hillhouse, GDS Holdings, the SoftBank Vision Fund, and Ken Griffin. The offering itself is being led by a banking syndicate comprising Morgan Stanley, JPMorgan Chase & Co., Bank of America, and Citigroup. Although deliberations continue and management could still proceed in the coming weeks, the firm has not made a final decision.
Heavy Customer Concentration in Filing Documents
Regulatory filings reveal that DayOne operates under substantial customer concentration as it tests public markets. In 2025 and the six-month period ended June 30, 2026, the company’s largest customer accounted for 69.4% and 69.2% of its revenue, respectively. A second major client represented 12.3% and 15.1% of revenue across those same periods, meaning that two clients generate roughly 85% of the firm’s revenue. Financial reporting identifies the primary customer through industry reporting as ByteDance, operating its TikTok short-form video platform worldwide.
The firm notes in its filings that its operational model depends heavily on maintaining these foundational customer commitments to fund infrastructure builds across Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Japan, Finland, and Spain.
DAYONE DATA CENTERS IS WEIGHING A DELAY OR SIZE CUT FOR ITS US IPOThe company is reconsidering its plans as volatility around data center stocks increases, per Bloomberg pic.twitter.com/AXFtedxLXP
Accordingly, our business has been and we expect will continue to be highly dependent on our relationships with our customers and we expect such customers to continue to account for a large percentage of our revenues and capacity.
DayOne Data Centers, in regulatory filing disclosures
Market Volatility and Competing Valuations Across the Digital Infrastructure Landscape
DayOne’s strategic hesitation follows a broader rout across data center and digital infrastructure stocks. Australian data center operator Firmus Grid pulled its roughly $5 billion initial public offering after prospective investors balked at valuation targets. AirTrunk delayed a planned real estate investment trust listing in Singapore to 2027, while South Korean digital infrastructure company Elice plunged 32% during its Seoul trading debut on Oct 20. Additional pressure hit the sector when shares of Australian operator Nextdc plummeted following an earnings guidance cut, and Coreweave shares halved from their May peak.
Market observers suggest that DayOne occupies a safer structural niche than compute-heavy neocloud competitors. Bloomberg Intelligence’s Yin notes that traditional data center operators generate highly predictable cash flows
by leasing physical space under long-term contracts, contrasting with neoclouds that carry heavier execution risks by renting out graphics processing unit capacity.
Given the recent market volatility, we think DayOne should downsize its capital raise to a smaller US$2.5 billion-US$3 billion deal, adjusting its underlying valuation to offer a more attractive ‘discount’ to ensure order book stability while keeping its multibillion-dollar construction pipeline funded.
Stephen Yin, analyst at Bloomberg Intelligence
Upcoming Catalysts and Investor Sentiment Ahead of US Midterm Elections
Market participants are watching several upcoming milestones to gauge whether risk appetite for artificial intelligence infrastructure will recover. Investors are tracking the potential stabilization of market conditions following the US midterm elections on Nov 3, alongside the upcoming listing performance of Anthropic as a broader barometer for sector sentiment. Meanwhile, DayOne continues dialogue with institutional investors as it weighs whether to launch its offering under adjusted terms or wait for a more hospitable market window.
*DAYONE IS SAID TO MULL OPTIONS FOR US IPO AMID DATA CENTER ROUT