AirTrunk secures $2.97 billion green loan for Malaysia data center expansion in Johor

Blackstone-owned data centre firm AirTrunk has secured a US$2.3 billion (S$2.97 billion) green loan from 30 lenders for a new facility in Malaysia, marking its largest financing to date for a single asset. The loan for its JHB2 hyperscale data centre in the southern state of Johor was led by 10 global coordinators including Credit Agricole CIB, DBS Bank, HSBC Holdings, Sumitomo Mitsui Banking, and United Overseas Bank, announced on July 29.

The deal reflects the continued momentum in Asia-Pacific's data centre sector, driven by the artificial intelligence boom, even as the broader regional syndicated loan market remains in its deepest slump in 16 years. However, rapid growth is testing banks' appetite for the sector. Credit Agricole is seeking to sell approximately HK$150 million (S$24.7 million) of a loan provided to ESR Group after hitting its internal lending cap for data centres.

The facility will achieve green certification through its energy and water-efficiency performance targets. The data centre is targeting a power usage effectiveness ratio of 1.37—below the global average of approximately 1.5 to 1.6—and will employ advanced water-efficient cooling technology to achieve these benchmarks. The green classification will enable AirTrunk to realize margin savings, which the company said will support its social impact programme in Malaysia.

AirTrunk is simultaneously pursuing additional growth initiatives. The company is in talks with banks for an A$4.3 billion (S$3.9 billion) loan for a new data centre in Australia and has been developing asset-backed bonds to refinance existing bank loans. The firm is also targeting an initial public offering of a Singapore real estate investment trust, which could raise approximately $1.5 billion.