DayOne Data Centers is seeking a HK$1.86 billion ($237 million) loan to fund a Hong Kong data center, according to people familiar with the matter, as the company accelerates infrastructure spending ahead of a planned US initial public offering.
The financing request comes as DayOne has stepped up borrowing to fund expansion. The company closed a Series C round exceeding $2 billion in June, then filed confidentially for a $5 billion US IPO in August, according to regulatory filings. The Hong Kong facility represents a geographic extension of its infrastructure footprint in Asia, a region where demand for data center capacity has intensified amid AI model training and deployment.
DayOne operates data centers globally and has positioned itself as a provider of large-scale compute infrastructure for hyperscalers and enterprise customers. The company is layering new debt onto recent equity raises and an active IPO process, with management expecting near-term revenue growth sufficient to service additional borrowing.
The Hong Kong facility loan is distinct from the company's June financing round. That Series C drew investment from leading institutional backers and valued DayOne at a level above $10 billion, according to the company's announcement. The new debt facility indicates the June equity raise did not fully capitalize the company's intended growth trajectory in the region.
Data center operators globally have pursued debt financing in parallel with equity rounds as rising power costs and semiconductor demand push construction and operating expenses upward. Lenders often view IPO-bound operators as lower-risk borrowers once the company has disclosed its financials to the public.
DayOne's Hong Kong expansion follows a broader pattern of US and European data center operators building in Asia-Pacific to capture demand from tech companies scaling AI operations. Competitors including Digital Realty, Equinix, and smaller pure-play operators have all expanded Asian capacity in the past 18 months, often through acquisitions or build-to-suit facilities financed by combinations of equity and debt.
The company is currently seeking lenders for the HK$1.86 billion facility. No terms, maturity, or commitment timeline have been disclosed. If DayOne closes the Hong Kong loan before or shortly after its IPO filing becomes effective, the debt will appear on the company's balance sheet in its registration statement, a factor institutional investors will weigh when pricing the offering.
