“The Singapore-based data centre operator may reach a valuation of about US$10 billion after the potential fundraising,” the people said, asking not to be identified discussing confidential information.

“The round is likely to be led by existing investors,” the people said, adding that some fresh backers may also join.

“Talks are at an advanced stage and a deal could be signed before the end of the year, although no final decisions have been made,” the people said.

In September, Bloomberg News reported that DayOne was considering raising at least US$1 billion in a funding round.

A representative from DayOne didn’t respond to a request seeking comment.

Chinese data centre operator GDS Holdings Ltd holds a 35.6% stake in DayOne after the firm completed two fundraising rounds that also included backing from Boyu Capital, Coatue Management, Hillhouse Investment, SoftBank Vision Fund and Citadel CEO Ken Griffin.

DayOne was known as GDS International or GDSI until a rebranding at the start of 2025.

It has a hub of data centres in Singapore, Malaysia and Indonesia, as well as a presence in Thailand, Hong Kong, Japan and Finland, its website shows.

GDS shares have rallied about 46% in Hong Kong this year, leaving the Chinese company with a market value of about US$6.9 billion. The company is also listed in the US.

Global investors have been eyeing data centres as companies invest in artificial intelligence infrastructure.

In September, Bain Capital agreed to sell its data centres in China to Shenzhen Dongyangguang Industry Co in a transaction valued at about US$4 billion.

A month later, investors led by BlackRock Inc’s Global Infrastructure Partners agreed to buy Aligned Data Centers in a US$40 billion deal.