Hillhouse Investment is said to be seeking around US$600 million in debt financing to support its investment in DayOne Data Centers, Bloomberg reported, citing people familiar with the matter.

The asset manager is understood to be in discussions with banks for a three-year loan. Part of the proceeds would be used to refinance debt linked to Hillhouse’s earlier investment in DayOne.

The loan could carry a margin of about 500 basis points over the benchmark Secured Overnight Financing Rate, according to the report.

This development follows DayOne’s US$4.5 billion Series C funding round, which closed earlier this month and was led by Hillhouse and Coatue Management.

The latest round increased Hillhouse’s stake in DayOne to about 19% on a non-diluted basis, compared with roughly 18% after the company’s Series A financing in 2024, according to people who spoke to Bloomberg.

The proposed Hillhouse loan may include a greenshoe option, which would allow the asset manager to raise more than the initial loan amount. The discussions are still at an early stage, and the terms may change, says the report.

.The financing talks point to the growing amount of debt being raised around DayOne as the company expands globally to meet demand for AI data centre capacity.

The Singapore-based operator is also in discussions with banks to increase an existing loan facility for its Malaysia business to as much as US$7 billion.

DayOne has also been expanding beyond Southeast Asia as AI-ready data centre capacity grows across Asia and other markets. 

It has also outlined early plans for a data centre project in Klaukkala, Nurmijärvi, Finland, adding to its existing plans in Lahti and Kouvola. Subject to approvals and permits, the site could be developed in phases with up to 560MW of grid power.