Chinese Data Centre Giant GDS Relaunches International Unit as DayOne

The overseas business of one of China’s largest data centre operators announced its relaunch under a new brand on Wednesday, positioning the unit of Shanghai-based GDS Holdings as an independent group.

Now dubbed DayOne, the former GDS International describes itself as having separate corporate governance, operations, finance, and technology functions from its mainland China parent. The announcement by the company led by GDS Holdings chairman and CEO William Huang as executive chairman comes on the heels of a $1.2 billion Series B fund raising concluded late in 2024 which drew support from US investment firms Coatue Management and The Baupost Group as well as SoftBank Vision Fund, and Kenneth Griffin, CEO of Citadel.

Analysts view the rebrand as a move to distance GDS’ international arm from its China-based parent amid geopolitical risks, and potentially position the company for a future initial public offering (IPO).

“The rebranding of GDS International to ‘DayOne’ is a calculated step to present its international business as a distinct and autonomous entity which can resonate more strongly with global investors,” National University of Singapore professor and sustainable futures co-director PS Lee told Mingtiandi.

IPO Dreams Stirred

With the rebranding, DayOne named Lim Ah Doo, chairman of Singapore-based agribusiness firm Olam Group as co-chairman, alongside Huang, with Lim having served as a director of GDS Holdings since 2014. Also joining DayOne’s board as advisors were former SoftBank Corp president and CEO Ken Miyauchi and Nasdaq vice chairman Bob McCooey.

Longtime GDS Holdings executive Jamie Khoo, who was named chief executive of GDS International in March, now serves as CEO of DayOne.

In a conversation with Mingtiandi, Vivian Wong, senior analyst at data center research firm DC Byte said the rebranding, along with the introduction of new leaders to the board could hint at a roadmap for an initial public offering.

“In the long run, I think their plan is to actually IPO, probably in the west or the Singapore market. This way, they are playing more like an international company in the likes of Equinix and Digital Realty,” Wong said.

Lee, who also sees DayOne potentially positioning for an IPO, said a listing for GDS’ ex-China business would provide fresh equity for international expansion, while allowing the parent company to channel resources into its domestic market.

“DayOne’s IPO would empower it to focus on global expansion, particularly in regions like Southeast Asia, primed for data center growth. Meanwhile, GDS could focus on navigating domestic challenges, such as China’s heightened competition and regulatory pressures,” Lee said.

In late December, GDS Holdings said it was also considering an IPO for a real estate investment trust (REIT) of its data center assets in China.

The Geopolitics of Data Centres

In its press statement, DayOne said it anticipates further regional growth following its relaunch as an independent group. The company currently operates in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, and Japan. Its latest deal, signed two months ago, is a $1 billion investment to establish a hyperscale data center campus in Thailand.

Analysts suggest that the rebrand could help mitigate concerns tied to GDS’ mainland China operations, especially given the oversupply in the Chinese market, where pricing remains lower compared to other regions. As Wong noted, “So far, the Chinese market is oversupplied, and pricing is low compared to other markets.”

Given the company’s aggressive expansion in Southeast Asia, NUS’ Lee said it is likely that DayOne will continue leveraging its expertise and partnerships to capture market share in the region.

“However, its long-term success will depend on managing risks like economic uncertainties in emerging markets and competition from established global players such as Equinix and Digital Realty,” he added.

Both Equinix and Digital Realty have been expanding rapidly in DayOne’s top markets. In October last year, Equinix said it will establish two data centers in Thailand under a $500 million plan. Digital Realty, meanwhile, told Mingtiandi last year that it is eyeing expansion in Southeast Asia and India to ride rising demand in the region.