DayOne Data Centers in Talks for US$500 Million Bond Offering to Fund AI Infrastructure Expansion

Singapore-based DayOne Data Centers Ltd has been in discussions with banks for weeks over a potential US$500 million bond offering, according to people familiar with the matter, as the company accelerates efforts to finance the buildout of infrastructure serving artificial intelligence workloads.

The bond offering, arranged by Citigroup Inc., could be brought to market as early as next year, the people said. The proceeds are intended to finance projects, though specific projects were not detailed. If completed, the offering would represent one of the first data center bond issuances in the Asia Pacific region, a notable development for a sector that has traditionally relied on bank loans and private credit to fund expansion.

The potential bond sale adds to a broader fundraising push by DayOne. The company filed last week for a US initial public offering aimed at raising a potential US$5 billion, part of its strategy to meet surging demand for AI infrastructure. DayOne has also previously secured half of a US$7 billion-equivalent loan backed by more than 30 lenders, and is seeking a HK$1.86 billion (US$237 million) loan for a data center project in Hong Kong.

In August, the company obtained a four-year S$530 million (US$414 million) loan to develop its inaugural data center in Singapore. DayOne maintains a geographic presence across Indonesia, Singapore, Malaysia, Japan, Hong Kong, Thailand, and Finland, positioning itself as one of the region's more ambitious data center developers.

The move underscores the growing appetite among data center operators to diversify their funding sources as AI-driven demand strains balance sheets and pushes developers toward public markets and bond investors. For Asia Pacific, a successful issuance could open a new channel for financing the region's rapidly expanding digital infrastructure pipeline. Representatives for DayOne and Citigroup declined to comment on the matter.