DayOne files for US IPO as Groq seeks $8 billion valuation

DayOne Data Centers, a Singapore-based data center operator, has submitted paperwork for an initial public offering in the United States and is weighing a raise of about $5 billion, VnExpress International reported. VnExpress International, citing Bloomberg and people familiar with the matter, said the company's listing could begin as soon as the next quarter.

Founded in 2022, DayOne completed a $4.5 billion Series C in June with existing backers Coatue Management and Hillhouse leading, and first-time investors including the Indonesia Investment Authority and ACHI Capital Partners participating. DayOne said the money will support growth across Asia-Pacific and Europe in markets such as Thailand, Malaysia, Singapore, Hong Kong, Indonesia, Japan, Finland and Spain. The company has booked more than 1.5 gigawatts of capacity across those regions, and its investors include GDS Holdings, SoftBank Vision Fund and Ken Griffin of Citadel. Reuters reported that DayOne's assets consist of about 480 megawatts in service or under construction, plus 590 megawatts reserved for future projects in Malaysia, Japan, Indonesia, Singapore and Hong Kong.

Nvidia-backed Groq is in talks to raise funds at an $8 billion valuation, more than double its value three months earlier, Bloomberg reported on Friday, citing investor documents. Executive Chairman Alex Davis has begun discussions with investors for a new Series B financing at that valuation, excluding the money raised. That follows an August round that valued Groq at $3.15 billion before it raised $350 million.

In a letter to investors, Davis said Groq can widen its profit margins without heavy borrowing, unlike competitors that depend on debt. He said other neoclouds' debt reduces “their ability to thrive as truly successful businesses” and that they act as facilitators while carrying massive unmet obligations. Groq and Disruptive, Davis's investment firm, declined to comment on the fundraising plans.

Groq initially produced AI chips to compete with Nvidia, then switched to running data centers that provide computing power for AI inference. The change occurred after Nvidia struck a $20 billion licensing deal late last year and hired Groq's founder and former CEO, Jonathan Ross, along with other staff. The remaining company now concentrates on inference computing, especially for cybersecurity customers.

Davis said the funding would help satisfy demand from short- and medium-term customer contracts, and he projects revenue to grow eightfold next year, with EBITDA reaching $2 billion by 2028. Shares of public data center operators CoreWeave and Nebius have faced pressure because investors worry about high debt levels and the possibility of more state-level opposition to data center projects after the U.S. midterm elections. Last week, Australia's Firmus Technologies said it had secured commitments for a $2 billion funding round, and other data center companies such as Switch and Nscale are also preparing for U.S. IPOs in 2026.