Abu Dhabi-based AI investment firm MGX is exploring the purchase of Singapore-headquartered data centre operator DayOne. The move could mark MGX's first Asian acquisition amid its broader strategy to invest over $100 billion across the artificial intelligence sector, even as DayOne weighs a $20 billion U.S. initial public offering.
- MGX pursues expansion via data centre acquisition in Asia
- DayOne targets $20 billion U.S. IPO but deal price uncertain
- MGX eyes aggressive global AI investments over $100 billion
What happened
MGX, an Abu Dhabi-backed artificial intelligence investment firm founded with Mubadala and G42, is reportedly in confidential discussions to acquire Singapore-based data centre operator DayOne. The talks involve an investment bank and aim to explore a possible transaction, although the deal is not guaranteed to proceed.
DayOne is currently preparing for a U.S. initial public offering targeting a valuation around $20 billion. However, sources indicate MGX may not be willing to meet this valuation. DayOne operates data centres in Southeast Asia, Hong Kong, Japan, and Finland, and has backing from notable investors like Coatue Management and SoftBank Vision Fund.
Why it matters
This potential acquisition would represent MGX's first major foothold in Asia, marking a significant step in its rapid expansion into international AI infrastructure. MGX's strategy includes investing over $100 billion across the AI ecosystem, which encompasses data centres and advanced chip technologies vital for AI workloads.
The deal also exemplifies Abu Dhabi's wider pivot towards economic diversification through substantial investments in technology. MGX's portfolio already includes stakes in high-profile AI ventures such as OpenAI, Anthropic, and SpaceX's xAI, alongside infrastructure investments involving Aligned Data Centers, BlackRock, and Nvidia.
What to watch next
Additionally, MGX's next moves in Asia and other global markets will be indicative of its broader AI investment approach. Given its aggressive asset target and backing by prominent Abu Dhabi entities, MGX's acquisitions and partnerships will impact AI infrastructure development and investment trends worldwide.