The move could mark the Abu Dhabi-backed AI investor’s first acquisition in Asia as it expands its global infrastructure footprint.

Artificial intelligence may be powered by algorithms, but the race is increasingly being won through infrastructure.

Abu Dhabi’s investment firm MGX is reportedly exploring a potential acquisition of Singapore-based data center company  DayOne in a deal that could value the company at around USD 20 billion. While discussions remain ongoing and no agreement has been reached, the transaction would represent one of MGX’s most significant bets yet on the infrastructure underpinning the global AI economy.

Why You Should Care

As AI adoption accelerates worldwide, data centers have become one of the most sought-after assets in technology. They provide the computing capacity needed to train, deploy, and scale increasingly sophisticated AI models.

For Gulf investors, ownership of data center infrastructure offers more than exposure to a growing industry. It provides strategic positioning within a technology stack that governments across the region view as critical to future economic competitiveness.

The Details

A deal for DayOne would also signal that UAE investors are moving beyond funding AI companies and into acquiring the infrastructure that powers them.

DayOne operates and develops data centers across Southeast Asia, Hong Kong, Japan, and Finland. The company has attracted backing from major global investors, including Coatue Management, SoftBank Vision Fund, and Citadel Securities founder Ken Griffin.

The company has also been evaluating a public listing. Reuters previously reported that DayOne was considering an IPO in the United States, alongside a possible listing in Singapore. Sources cited by Reuters said MGX may be unwilling to match the valuation DayOne is targeting through public markets, leaving both an acquisition and an IPO on the table.

Founded in 2024, MGX has quickly emerged as one of the UAE’s most active AI-focused investment vehicles. The firm was established by Mubadala and G42 and operates under the broader AI ambitions championed by the UAE.

Its portfolio already includes stakes in some of the world’s most prominent AI companies and infrastructure projects. MGX has invested in OpenAI, Anthropic, and xAI, while also backing Aligned Data Centers through a USD 30 billion AI infrastructure partnership that includes BlackRock and Nvidia.

The firm has also invested outside traditional AI sectors, acquiring a stake in TikTok’s U.S. operations and committing USD 2 billion to cryptocurrency exchange Binance.

The Ripple 

A successful acquisition would strengthen the UAE’s position in the increasingly global competition for AI infrastructure assets.

Governments and investors worldwide are racing to secure access to computing capacity as demand for AI services grows. Data center operators have emerged as key beneficiaries of that trend, attracting capital from sovereign wealth funds, private equity firms, and technology giants.

The transaction would also reflect a broader shift in Gulf investment strategy. Rather than focusing solely on domestic projects, regional investors are increasingly pursuing international assets that provide strategic exposure to sectors expected to define future economic growth.

For Southeast Asia, the deal would highlight the region’s growing importance within the global AI ecosystem. Demand for digital infrastructure continues to rise as cloud providers, AI developers, and enterprises expand their computing needs.

What to Watch

Whether MGX ultimately pursues an acquisition or DayOne moves forward with an IPO, the outcome will offer a valuable signal about how AI infrastructure assets are being valued globally.

More importantly, it will reveal how aggressively Gulf investors intend to compete for ownership of the physical infrastructure behind artificial intelligence. The next phase of the AI race may be determined not only by who builds the best models, but by who controls the data centers that make them possible.