“The Singapore-based data centre operator has chosen JPMorgan Chase & Co and Morgan Stanley to work on the share sale,” the people said, asking to not be identified because the information is private.

“Bank of America Corp and Citigroup Inc are also working on the deal,” the people said.

“DayOne, backed by Chinese data centre operator GDS Holdings Ltd, has been targeting a valuation as high as US$20 billion in a listing that may take place as soon as this year,” people familiar with the matter have said.

“Considerations are ongoing and other banks could still be added,” the people said.

“Details, including the size of the offering, may change,” they added.

A representative for DayOne didn’t respond to a request seeking comment, while the banks declined to comment.

Data centres have become a popular sector as companies and investors deploy capital into digital infrastructure needed to power artificial intelligence (AI).

The US IPO market has been jolted over the past week as recently listed companies have suffered losses, threatening to darken the mood ahead of some major listings expected later this year.

Broker Clear Street Group Inc cut its listing target recently and then postponed the deal altogether, just days after Brazilian fintech AGI Inc pared its one too.

That comes as the Nasdaq 100 Index fell 4.6% and shed about US$1.5 trillion in market value over the past 10 sessions, hit by a selloff in software names and other services providers deemed at risk of disruption from new AI tools.

DayOne, previously known as GDS International or GDSI, closed a more than US$2 billion Series C funding round last month to support its international expansion.

The round was led by existing investor Coatue Management.

DayOne runs data centres in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, Tokyo and Finland, its website shows.

Other investors in the company include Boyu Capital, Hillhouse Investment, SoftBank Vision Fund, Tekne Capital, Baupost Group and Citadel CEO Ken Griffin.