MGX in Talks to Buy DayOne, Digital Realty Plans 600MW Kansas Campus as Data Center M&A Accelerates

Abu Dhabi investment firm MGX is reportedly working with an investment bank to acquire DayOne, a Singapore-based data center operator spun out of GDS in 2025, according to three unnamed sources cited by Reuters. The potential deal comes just as DayOne had been preparing a $20 billion initial public offering.

DayOne currently operates a portfolio of more than 500MW of data center capacity in service and under construction, with another 500MW held for future development across Hong Kong, Singapore, Malaysia, Indonesia, Japan, Thailand, and Finland. The company also repurchased $385 million in shares from GDS in January, though GDS remains a significant minority shareholder.

Digital Realty's Dual Moves

Digital Realty, one of the largest data center REITs, announced plans for a 600MW campus in Kansas and the acquisition of investment firm Columbia Capital in the same week. The Kansas campus will be one of the largest single-site developments in the company's history, targeting hyperscale and enterprise customers in the US heartland. The acquisition of Columbia Capital adds dedicated investment expertise to Digital Realty's portfolio.

• MGX previously co-led the $40 billion acquisition of Aligned Data Centers with BlackRock in late 2025, the largest-ever data center M&A deal. MGX also partners in OpenAI's Stargate project and is exploring an investment in Anthropic.
• DayOne's IPO, if it proceeds, would be one of the largest in the data center sector, valuing the company at $20 billion. The acquisition talks suggest MGX prefers direct ownership over a public listing.
• Digital Realty's 600MW Kansas campus and Columbia Capital purchase signal continued expansion in secondary US markets and investment capabilities, following a trend of REITs diversifying into development and finance.

Flexible Infrastructure Trend

The move toward modular, adaptable data centers is gaining traction as operators seek to reduce construction timelines and align capacity with demand. A recent MIT Technology Review feature highlighted the emergence of flexible data center designs that can be rapidly deployed and scaled, contrasting with traditional large-scale campuses. These modular approaches are especially relevant for edge computing and AI workloads that require distributed capacity.

Both MGX's potential DayOne acquisition and Digital Realty's Kansas campus reflect the industry's dual focus: megascale hyperscale projects and nimble, flexible deployments. Analysts expect M&A activity to remain elevated as sovereign wealth funds and infrastructure investors compete for assets, while operators like Digital Realty balance build-to-suit projects with acquisition-driven growth. The outcome of the MGX-DayOne talks will likely influence the pace of IPOs in the sector, with investors watching for a premium that could set a benchmark for valuations.