Editor’s Note: Anthropic just hosted a pre-IPO investor day in San Francisco. Plans are now in motion for the company to go public before Thanksgiving. |
Investor Brad Gerstner says “there’s going to be tremendous demand” for IPO shares. He predicts it’ll be at least 5x oversubscribed. And that means most investors will be locked-out. |
Go here to discover how to claim a Pre-IPO stake today. |
A company most U.S. investors have never heard of just filed for one of the biggest tech IPOs of the fall. |
It’s called DayOne Data Centers. And its business is built almost entirely on TikTok. |
DayOne Data Centers (Nasdaq: DODC)
Target raise: up to $5 billion
Valuation target: $20 billion |
DayOne builds and runs hyperscale data centers in Southeast Asia, Japan, and Europe. It supplies the building, the power, and the cooling. Customers bring their own servers and chips. |
The company started in 2022 as the overseas arm of GDS Holdings, a large Chinese data center operator. It was spun off in late 2024, renamed in January 2025, and is now headquartered in Singapore. Coatue, Hillhouse, and GDS each own about 19%. SoftBank and Citadel joined a $4.5 billion round in June. |
The growth is remarkable. Revenue went from $178 million in 2024 to $484 million in 2025. First-half 2026 revenue hit $512 million, more than triple the prior year. Adjusted EBITDA margin runs around 40%. |
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Here’s the catch. |
One customer accounted for 69% of revenue in the first half of this year. The filing describes it only as a global technology company with a leading short-form video platform. The Information reports it is ByteDance, TikTok’s parent. Oracle is reportedly second at 15%. |
Geography is just as concentrated. Malaysia generated 87% of first-half revenue, mostly from campuses in Johor, across the border from Singapore. |
One more wrinkle. |
The ByteDance business isn’t AI. It’s conventional work like serving videos and processing TikTok Shop orders. DayOne’s AI business is being built with Oracle and with neoclouds like Firmus, an Nvidia-backed company building a huge facility in Batam, Indonesia that’s expected to serve Meta. |
The losses are big. DayOne lost $369 million in 2025 and $82 million in the first half of 2026. Debt is roughly $4.9 billion. The company estimates it needs about $11.4 billion in capital to build out the capacity customers have already booked. The filing also flags material weaknesses in internal controls. |
The timing for this IPO isn’t great. |
Firmus just scrapped a $5.5 billion Australian IPO over valuation and debt concerns. SB Energy delayed its deal. Investors are getting choosy about data center listings. |
DayOne’s edge is contracts. It has 2.3 gigawatts booked, nearly all take-or-pay, most with 10- to 15-year terms. And ByteDance is reportedly less than half of 2027 commitments, so diversification is improving. |
I’ll be watching this one from the sidelines. There’s a ton of recent volatility in AI stocks. And patient investors will likely have a chance to buy the stock below the IPO offering price. |
Anthropic is the huge IPO that everyone is watching. Whether it actually goes public – and how the stock trades – will set the tone for the IPO market. |
The IPO is expected before Thanksgiving. The valuation will be $1.5 - $2 trillion. And the company plans to raise roughly $100 billion. |
Don’t wait for the IPO prospectus to drop. Go here to invest ahead of the Nasdaq listing. |
Ian Wyatt
Editor, IPO Watch |
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