DayOne Data Centers Singapore has successfully secured a substantial amount of financing totaling 15 billion ringgit ($3.5 billion) to bolster its green data center projects in Malaysia’s Johor state. The financing, facilitated by Oversea-Chinese Banking Corporation, comprises a 7.5 billion ringgit Islamic financing and a $1.7 billion offshore term-loan facility.
OCBC and its Malaysian unit OCBC Bank Malaysia collaborated as joint coordinators for this syndicated financing initiative. The funding will support DayOne’s data centers, which are set to achieve green digital infrastructure certification. United Overseas Bank also played a key role as a joint coordinator in this significant transaction, marking it as one of the largest in Southeast Asia for data centers and the largest green Islamic syndicated facility in Malaysia. The syndication involved six other banks alongside UOB.
The funds raised will be utilized for both refinancing and capital expenditure for DayOne’s data center projects. The company’s anchor data center campuses are strategically located at Nusajaya and Kempas Tech Parks in Johor, contributing to investments in the Johor-Singapore Special Economic Zone, as highlighted by Malaysia’s largest lender, Malayan Banking.
Malaysia is emerging as a key beneficiary of the increasing demand for data centers in Asia to support the surge in artificial intelligence applications. Johor, situated opposite the city-state of Singapore, currently boasts around 30 completed or ongoing data center projects, with an additional 20 awaiting approvals. Notable companies such as Microsoft and ByteDance have made significant investments in the region.
According to Trade Minister Zafrul Aziz, Johor is projected to host 60% of Malaysia’s total data center capacity by 2030. This growth aligns with the government’s efforts to drive economic development and technological advancement in the region.
Formerly part of GDS Holdings Ltd., DayOne has now transitioned into an independent entity following deconsolidation. The recent financing deal, described as the company’s largest-ever loan, represents a significant milestone in the data center sector. It stands out as one of the most substantial syndicated financings for a borrower in Asia, as reported by Bloomberg News.
