GDS Holdings Limited (NASDAQ:GDS), China’s largest carrier-neutral data center operator, has agreed to sell a portion of its stake in its international arm, DayOne, back to the subsidiary for $385 million.
The transaction follows a massive Series C financing round by DayOne that raised over $2 billion from global investors, including Coatue and the Indonesia Investment Authority.
The share repurchase was executed at the same valuation as the Series C new issue, allowing GDS to recycle approximately 95% of its original principal in the international platform.
The deal represents a significant windfall for GDS, yielding a 6.5x multiple of money on the divested shares.
Even after the sale, GDS’s remaining equity interest in DayOne is implied to be worth over $2.2 billion, a figure equivalent to roughly $11.18 per GDS American Depositary Share (ADS).
DayOne, which was rebranded from GDS International in 2025, has rapidly scaled its "SIJORI" strategy, establishing hyperscale campuses across Singapore, Johor (Malaysia), and Batam (Indonesia), as well as expanding into Finland and Japan.
GDS management stated that the $385 million in proceeds will be redeployed into its core China data-center business.
The company is currently pivoting to meet a surge in domestic demand for AI-ready infrastructure, with approximately 65% of its new bookings in 2025 tied to AI workloads.
By monetizing its international success, GDS aims to strengthen its balance sheet and accelerate the build-out of high-density power capacity in China’s Tier 1 economic hubs.