AirTrunk seeks $2.2 billion loan to build Singapore data centres
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AirTrunk opened its first data centre in Singapore in December 2020.
PHOTO: AIRTRUNK
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Hong Kong – Blackstone-owned data centre firm AirTrunk is seeking a $2.2 billion green loan for a new greenfield project in Singapore, according to people familiar with the matter, as it looks to ramp up its expansion plans regionally.
The proceeds of the latest loan will fund Australia-based AirTrunk’s 80.2MW greenfield data centre campus buildout in Singapore until Dec 31, 2050, said the people. The construction will be carried out on behalf of one of its key US clients, after which AirTrunk will lease back some of the power allocated via long-term contracts, the people added.
A spokesperson for Blackstone declined to comment.
Artificial intelligence advances are fuelling demand for data centre fund-raising in Asia, a region that has seen a series of record-breaking loans.
Among the recent financings, Bain Capital-owned Bridge Data Centres obtained a US$2.8 billion (S$3.8 billion) facility for its operations in Malaysia, while DayOne, formerly known as GDS International, launched a US$3.4 billion-equivalent borrowing into the market.
These deals underscore how much of a data centre hot spot Asia has become, with demand set to expand by about 32 per cent a year through 2028, according to data by real estate services firm Cushman and Wakefield, outpacing the US’ expected growth of 18 per cent.
AirTrunk is in the process of wrapping up a separate US$2.8 billion-equivalent sustainability-linked loan, which will fund the capital expenditure requirements of its data centres in Malaysia, Singapore and Hong Kong. Blackstone, which along with Canada Pension Plan Investment Board acquired the operator in 2024, is also considering tapping the asset-backed securities market to fund AirTrunk’s growth in the Asia-Pacific.
Credit Agricole, DBS Group and ING Bank are the coordinators of AirTrunk’s latest three-year loan, the people said. AirTrunk Singapore Ten is the borrower of the facility, which pays an opening margin of 225 basis points over the benchmark Singapore Overnight Rate Average, the people added. BLOOMBERG
