DayOne Data Centers Singapore Pte. secured 15 billion ringgit ($4.56 billion) of multicurrency financing to support its green data centers in Malaysia’s Johor state, according to a statement from Oversea-Chinese Banking Corporation Ltd.
OCBC and its Malaysian unit OCBC Bank (Malaysia) Bhd. acted as joint coordinators for the syndicated financing, which comprises a 7.5 billion ringgit Islamic financing and a US$1.7 billion offshore term-loan facility, the bank said.
The proceeds will be used for both refinancing and capital expenditure of DayOne’s data centers, that are expected to obtain green digital infrastructure certification, it said.
In a separate statement, Malaysia’s biggest lender Malayan Banking Bhd. said it underwrote 2.5 billion ringgit, or the biggest portion, of the Islamic financing tranche for DayOne. DayOne’s anchor data center campuses will be located at Nusajaya and Kempas Tech Parks in Johor, and will be part of investments into the Johor-Singapore Special Economic Zone, it added.
Malaysia is turning into a beneficiary of Asia’s growing need for data centers to support the boom in artificial intelligence. Johor — which sits across from the city-state of Singapore — has about 30 projects completed or under construction, plus 20 more awaiting approvals. Companies investing have included Microsoft Corp. and ByteDance Ltd.
Johor is expected to host 60% of Malaysia’s total data center capacity by 2030, Trade Minister Zafrul Aziz said in a speech delivered at the signing ceremony for the syndicated financing.
See also: Google unit awards data centre contract to Malaysia’s Gamuda
DayOne, formerly known as GDS International, is the international arm of Chinese data center operator GDS Holdings Ltd. The facility, which is its biggest-ever loan, would be among the largest syndicated financings for the sector by a borrower in Asia, Bloomberg News reported.
