DayOne advances IPO plans as data center investor scrutiny intensifies

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DayOne data center IPO plans

Highlights

DayOne plans to publicly file with the SEC in mid-October and list in November, potentially raising up to $5 billion at a $20 billion valuation.
Investors increasingly favor data center IPO candidates with diversified customer bases, secured power supply, and contracted operational capacity amid tighter scrutiny and higher interest rates.
DayOne, backed by Coatue and Hillhouse, closed a $4.5 billion Series C round in June and has secured 2.1 gigawatts of capacity bookings across Asia-Pacific and Europe.

DayOne filing timeline and market backdrop

As reported by Reuters, DayOne plans to publicly file with the U.S. Securities and Exchange Commission in mid-October and list in November, according to three people familiar with the matter. The people said the timetable could still change, and DayOne declined to comment.

The company develops and operates data centers for cloud and AI customers and has sought to distinguish itself with operating assets rather than only projects under development. One of the people said Switch, which has already filed confidentially for an IPO, is expected to launch its offering after DayOne.

DayOne's plans come after setbacks elsewhere in the sector this week. SoftBank-backed SB Energy has postponed formally marketing its IPO as it addresses additional SEC questions, while a dispute involving Oracle and Blue Owl threatens to delay a data center project in New Mexico.

Power, contracts and diversification shape investor demand

Investors are becoming more selective as more data center developers and operators move toward public markets, including Switch, Vantage Data Centers and CyrusOne. Operators with diversified customer bases, secured power supply and contracted capacity already operating or nearing completion are seen more favorably than projects tied heavily to a single AI customer or requiring large upfront capital commitments.

With power supply now a central constraint, long-dated take-or-pay contracts and revenue visibility are carrying more weight in IPO assessments. Higher interest rates are also raising the cost of financing AI-ready facilities, increasing pressure on developers that depend on debt and need dependable contracted revenue from creditworthy customers.

DayOne has backing from investors including Coatue and Hillhouse and raised $4.5 billion in a Series C funding round that closed in June. According to its website, it has secured about 2.1 gigawatts of capacity bookings and operates across Asia-Pacific and Europe, including Malaysia, Hong Kong, Japan, Finland and Spain; it could seek to raise as much as $5 billion in the IPO at a valuation of about $20 billion.

In our earlier report on Eaton’s planned €810 million acquisition of Italy’s COL Group, we explained how the deal is aimed at expanding Eaton’s European power-distribution and manufacturing capacity. We noted that growing electricity infrastructure demand from utilities and data centers is driving investment in equipment such as switchgear, grid automation and modular power systems—an important backdrop as data-center operators push toward public markets.

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