DayOne Data Centers Ltd., backed by GDS Holdings, has selected banks to arrange a US initial public offering that could raise about $5 billion, according to sources familiar with the matter. The data center operator is with plans to list on American exchanges, tapping into strong investor demand for infrastructure assets.

The IPO comes as data center companies benefit from surging cloud computing and AI workloads driving capacity needs. DayOne's selection of underwriters signals serious preparation for a market debut, though timing and valuation details remain unclear. The company's backing by GDS Holdings, a major Chinese data center operator, adds strategic significance to the offering.

With $5 billion potentially at stake, the IPO would rank among the largest US listings this year if it proceeds as planned. The move reflects continued appetite for data infrastructure investments as enterprises accelerate digital transformation initiatives. DayOne's market debut would provide investors exposure to the growing demand for hyperscale data center capacity.