Investment firm Hillhouse Investment Management is in discussions with banks to secure around $600m in debt financing to support its continued investment in data centre operator DayOne Data Centers Ltd, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the proposed three-year loan is expected to be priced at roughly 500 basis points over the US Secured Overnight Financing Rate, with a portion of proceeds also earmarked for refinancing existing borrowings tied to Hillhouse’s earlier investment in the company. Terms remain under negotiation and could still change.
The financing comes shortly after Hillhouse and Coatue Management led a Series C funding round valuing DayOne at approximately $4.5bn, further increasing Hillhouse’s stake to about 19% on a non-diluted basis.
DayOne, formerly known as GDS International, is a fast-growing data centre platform operating across Asia and Europe, including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo and Finland. The company has attracted significant institutional backing as demand for digital infrastructure accelerates amid the global artificial intelligence build-out.
The latest fundraising activity underscores the scale of capital required to support hyperscale data centre expansion, particularly as operators race to secure land, power and connectivity in key markets. In parallel, DayOne is reportedly exploring further financing options, including an expansion of an existing Malaysian credit facility that could reach up to $7bn.
The company has previously drawn investment from a range of global institutional investors, reflecting strong appetite for AI-linked infrastructure assets. It is also considering a potential US initial public offering, with market talk suggesting a possible valuation of up to $20bn, depending on timing and conditions.
