AirTrunk secures US$2.3 billion green loan for major new data center facility in Johor, Malaysia, enabling significant Southeast Asia capacity expansion.

Blackstone-owned data centre firm AirTrunk has secured a US$2.3 billion green loan from 30 lenders for a new facility in Malaysia, marking its largest financing 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, DBS, HSBC, Sumitomo Mitsui Banking and UOB.

The artificial intelligence boom has fuelled a wave of multibillion-dollar data centre deals across Asia-Pacific, even as the broader regional syndicated loan market remains in its deepest slump in 16 years. However, the rapid growth is also testing banks' appetite for the sector, with some lenders taking steps to manage their exposure. Credit Agricole is seeking to sell approximately HK$150 million (US$19 million) of a loan it and other banks provided to ESR Group after hitting its internal lending cap for data centres.

AirTrunk is simultaneously pursuing other major financing initiatives. The company is in talks with banks for a A$4.3 billion (US$3 billion) loan for a new data centre in Australia and has been working on asset-backed bonds to refinance existing bank loans. Additionally, AirTrunk is targeting an initial public offering of a Singapore real estate investment trust that could raise approximately US$1.5 billion.

The loan qualifies as green financing due to the facility's energy and water efficiency performance. 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. The green loan structure will allow AirTrunk to generate margin savings, which it said will support its social impact programme in Malaysia.