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(Bloomberg) — Blackstone Inc.-owned data center firm AirTrunk has secured a $2.3 billion green loan from 30 lenders for a new facility in Malaysia, its largest financing so far for a single asset.
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The loan for its JHB2 hyperscale data center in the southern state of Johor was led by 10 global coordinators including Credit Agricole CIB, DBS Bank Ltd., HSBC Holdings Plc, Sumitomo Mitsui Banking Corp. and United Overseas Bank Ltd., the company said in a statement on Wednesday.
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The artificial intelligence boom has fueled a wave of multibillion-dollar data center deals across Asia Pacific, even as the broader regional syndicated loan market remains in its deepest slump in 16 years.
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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 ($19 million) of a loan it and other banks provided to ESR Group after hitting its internal lending cap for data centers, according to people familiar with the matter.
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AirTrunk, which is also in talks with banks for a A$4.3 billion ($3 billion) loan for a new data center 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.
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The loan is classified as green due to the facility’s energy and water efficiency performance, the company said. The data center 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.
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The green loan will allow AirTrunk to generate margin savings which it said will support its social impact program in Malaysia.
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