AirTrunk and Vantage Data Centers announce multi-billion-dollar capital deployment for new facilities in Malaysia, capitalizing on ASEAN geopolitical shift as alternative hub.
Blackstone Inc.-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 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: Credit Agricole CIB, DBS Bank Ltd., HSBC Holdings Plc, Sumitomo Mitsui Banking Corp., and United Overseas Bank Ltd.
The artificial intelligence boom has fuelled a wave of multibillion-dollar data centre deals across the Asia-Pacific, even as the broader regional syndicated loan market remains in its deepest slump in 16 years. 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 about 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, according to people familiar with the matter.
AirTrunk is also 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. The company is targeting an initial public offering of a Singapore real estate investment trust that could raise about US$1.5 billion.
The loan is classified as green 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 about 1.5 to 1.6, and will employ advanced water-efficient cooling technology. AirTrunk said the green loan will allow the company to generate margin savings that will support its social impact program in Malaysia.
Meanwhile, Vantage Data Centers, backed by DigitalBridge Group Inc., is considering selling its assets in Malaysia. The hyperscale data centre provider is working with a financial adviser on the planned divestment. A transaction could value the Vantage assets in the Southeast Asian nation at more than US$2 billion, though considerations are ongoing and Vantage could opt to keep its assets in Malaysia. Representatives from Vantage and DigitalBridge declined to comment.
In Malaysia, Vantage owns the KUL1 data centre campus in Cyberjaya, comprising 31MW of capacity, where it is also building a second facility offering 436MW. In Johor, one of Southeast Asia's largest data centre hubs, Vantage is developing three data centres with a combined load exceeding 300MW.
DigitalBridge is currently being acquired by SoftBank Group Corp. for approximately US$3 billion.