Abu Dhabi-based investment firm MGX is evaluating a multi-billion dollar acquisition of Indian data centre operator DayOne, according to economictimes.indiatimes.com. The potential deal, currently under consideration, aims to expand MGX's footprint in the fast-growing data infrastructure sector. The discussions have gained traction this month as MGX seeks to capitalize on rising demand for data centre capacity in India and the Middle East.
The acquisition talks involve detailed due diligence and valuation assessments by MGX, which is targeting DayOne for its strategic assets and market position. DayOne operates multiple data centres across India, catering to cloud service providers and enterprises. MGX’s interest reflects a broader trend of sovereign wealth funds investing heavily in digital infrastructure globally. The Economic Times report highlights that MGX is weighing the deal amid competitive bids from other investors.
This potential acquisition underscores the growing importance of data centres as critical infrastructure in the digital economy. India’s data centre market has attracted significant foreign investment recently, driven by increased cloud adoption and data localisation policies. Comparable deals in the sector include investments by global firms such as Blackstone and Brookfield. MGX’s move could intensify competition and accelerate consolidation in the Indian data centre space, which is projected to grow rapidly over the next decade.
MGX’s decision on the DayOne acquisition is expected within the next quarter, with the deal size anticipated to be in the multi-billion dollar range, as per economictimes.indiatimes.com. The outcome will be closely watched by investors and market participants given its potential impact on the data centre investment landscape in India and the broader region.