Abu Dhabi investment firm MGX is reportedly looking to purchase Singaporean data center operator DayOne.

Citing three unnamed sources, Reuters said MGX was working with an investment bank in preparation for a potential transaction.

Spun out of Chinese firm GDS in 2025, APAC-focused DayOne has been aiming to take itself public in a $20 billion initial public offering (IPO).

Reuters’ sources said that the MGX acquisition is not finalized and a DayOne IPO could still go ahead.

DayOne currently runs a portfolio of more than 500MW of data center capacity in service and under construction, with another 500MW held for future development across Hong Kong, Singapore, Malaysia, Indonesia, and Japan. The company also has sites in Thailand and Finland.

In January, the company announced it had repurchased some of its shares worth $385 million from GDS, though the Chinese firm remains a significant minority shareholder.

MGX is owned by Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, and has primarily focused on AI investments.

The investment firm is a partner in OpenAI’s Stargate project and is also looking to invest in Anthropic.

Late last year, MGX, along with BlackRock and others, purchased Aligned Data centers for $40 billion in the largest-ever acquisition in the digital infrastructure space.