Yondr Group Ltd, a global data center developer and operator, is looking to secure approximately US$500 million (RM2.17 billion) in private debt for a project in Malaysia. The loan, expected to have a term of around five years, will support the construction of data centers in Johor, a southern state in Malaysia. The negotiations are still in progress, and the specifics of the deal may change, according to sources familiar with the situation who requested anonymity.
Yondr’s upcoming financing highlights the increasing investment by tech companies and financiers in data centers throughout Asia, driven by the rapid growth of artificial intelligence development and services. In August, Mubadala Investment Co. announced its investment in the London-based firm, marking the Abu Dhabi wealth fund’s latest venture into the sector.
The world's largest corporations are expected to invest up to US$60 billion in the coming years, as Southeast Asia's youthful demographics increasingly adopt video streaming, online shopping, and generative AI technologies.
Johor which borders Singapore has been a particular beneficiary of this booming demand. In May, Yondr raised a loan of up to US$150 million from the International Finance Corp to fund the first-phase construction of a data centre campus in Johor’s Sedenak Tech Park, according to the company in a press release. The project aims to facilitate regional businesses’ access to AI-cloud workloads and boost digital productivity.
Shanghai-based GDS Holdings Ltd is also exploring the possibility of securing approximately RM10 billion in loans for its data center operations in Malaysia, as previously reported. This would represent one of the largest financing deals for such a project in Asia.