Abu Dhabi-backed AI investment firm MGX has explored a potential acquisition of Singapore-based data centre operator DayOne, Reuters reported, citing three people familiar with the matter.

The firm has been working with an investment bank as it assesses a possible deal, according to two of the sources cited by Reuters. The talks remain confidential and may not lead to a transaction.

DayOne has also been preparing for a possible US listing at a valuation of about US$20 billion. Two sources said MGX may be unwilling to meet that price, while the company could still decide to pursue an IPO instead.

DayOne operates and develops data centres across Southeast Asia, Hong Kong, Japan and Finland. Media reports have also suggested that the company is considering a dual listing in Singapore and the US, although the Singapore plan remains uncertain.

The company has previously raised capital from investors, including Coatue Management, SoftBank Vision Fund, and Citadel Securities founder Ken Griffin.

The Tech Capital has reached out to DayOne for comments.

DayOne has also drawn fresh financing attention. Bloomberg reported this week that Hillhouse Investment is seeking about US$600 million in three-year debt financing to support its investment in the operator and refinance debt tied to an earlier investment in the company. This follows DayOne’s US$4.5 billion Series C funding round, which closed earlier this month and was led by Hillhouse and Coatue Management.

A deal would add to MGX’s growing exposure to AI infrastructure. The firm was established just over two years ago by Mubadala and G42 and is part of Abu Dhabi’s broader push into AI, with a target of more than US$100 billion in assets across the AI value chain, including data centres and chips.

MGX is also part of the consortium behind the US$40 billion takeover of Aligned Data Centers, alongside BlackRock, Global Infrastructure Partners, Nvidia, Microsoft, and xAI. The transaction, the largest data centre deal to date, is the first major move by the group’s AI Infrastructure Partnership.

The firm has also expanded its AI infrastructure activity in Europe. Bpifrance, Mistral, and MGX recently announced plans to expand Campus AI in France, with a target of developing up to 3GW of compute capacity nationwide.