ByteDance’s Data Center Supplier DayOne Files for $5 Billion Nasdaq IPO
TREE NEWS reports: Singapore-based data center developer DayOne has formally filed a Form F-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a planned Nasdaq listing in 2026. The company aims to raise up to $5 billion (approximately RMB 33.39 billion), targeting a valuation of around $20 billion (approximately RMB 133.56 billion). The filing reveals a highly concentrated customer base, with a single anonymous client contributing nearly 70% of revenue in 2025 and the first half of 2026. That client is widely identified as ByteDance, the parent company of TikTok.
DayOne, which was spun off from GDS Holdings’ international business in 2025, specializes in hyperscale data center development and operation. It pioneered the “SIJORI” cross-border data center model, integrating Singapore’s high connectivity, Johor’s low-cost land and power, and Batam’s expansion space into a low-latency regional platform. DayOne holds approximately 33% market share by booked capacity in these regions.
The company’s financials show explosive growth but persistent losses. Revenue surged 172% year-over-year to $484 million in 2025, and jumped 238% to $512 million in the first half of 2026 alone, already exceeding full-year 2025 revenue. However, DayOne reported a net loss of $367 million in 2025 and $77.2 million in H1 2026, attributed to share-based compensation and settlement costs related to terminating customer support arrangements with former parent GDS. Adjusted gross margins stood at 55.2% and 55.7%, respectively.
ByteDance’s reliance on DayOne is significant: as of September 2026, ByteDance had committed to leasing 838 megawatts of capacity across DayOne’s sites in Malaysia, Thailand, and Finland. Oracle is the second-largest customer, contributing about 15% of H1 2026 revenue. Together, the top two clients account for nearly 85% of revenue.
Market Implications
The IPO arrives amid a turbulent period for AI infrastructure stocks. Neocloud providers like CoreWeave and Nebius have seen their shares drop 20-25% in a week, and Australian firm Firmus withdrew its IPO. DayOne’s concentrated customer base and high capital expenditure requirements mirror the risks facing these peers. A successful listing could validate the hyperscale data center model, but investor appetite may be tempered by customer concentration and ongoing losses. The deal could also impact GDS Holdings, which still holds a stake, and provide a benchmark for other Asian data center operators seeking U.S. listings.
Key Takeaways for Investors
- Customer concentration risk: Nearly 70% revenue from ByteDance and 85% from top two clients—diversification is crucial for long-term stability.
- Growth vs. profitability: Rapid revenue expansion but continued net losses; watch for path to profitability as scale increases.
- AI infrastructure demand: The IPO reflects strong demand for AI-ready data centers, but market volatility in the sector could affect pricing and timing.
- Strategic location: The SIJORI model offers cost advantages and low latency, positioning DayOne well for Southeast Asia’s digital economy growth.
