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, its largest financing so far 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, the company said in a statement on July 29.
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.
But 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 (S$24.7 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, which is also in talks with banks for a A$4.3 billion (S$3.9 billion) loan for a new data centre in Australia, has been working on asset-backed bonds to refinance existing bank loans. The company is said to be targeting an initial public offering of a Singapore real estate investment trust that could raise about $1.5 billion.
The loan is classified as green due to the facility’s energy and water efficiency performance, the company said. 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, according to the firm.
The green loan will allow AirTrunk to generate margin savings which it said will support its social impact programme in Malaysia. BLOOMBERG
