AirTrunk has secured AU$4.25 billion (US$2.8bn) in green financing to fund the continued development of its SYD3 data centre campus in Western Sydney. The announcement comes at a time when the industry is facing a more uncertain environment for data centre equity markets.
The loan will support the ongoing development of SYD3, which is under construction and expected to be completed by mid-2028. AirTrunk said the project would provide infrastructure for cloud, artificial intelligence and enterprise services, and support more than 10,000 jobs across construction, trades, engineering, logistics and safety.
The financing was backed by a consortium of 32 local and international financial institutions, with 14 banks underwriting the facility. It brings AirTrunk’s total committed debt financing to approximately AU$38.4 billion globally, including more than AU$19.8 billion across its Australian projects.
The green loan includes margin adjustments, with any contributions from financing-related savings directed to AirTrunk’s social impact programme. The company said construction measures at SYD3 include lower-carbon steel and concrete, alongside a target to divert at least 90 percent of non-hazardous construction waste from landfill.
“SYD3 is a long-term investment in Western Sydney and Australia’s digital capability, backed by the confidence of leading Australian and international banks,” said Tom Mackellar, AirTrunk’s vice president of origination and market expansion.
The company said its Australian platform comprises five campuses with more than 1.2GW of capacity. It has invested more than AU$12 billion in Australian projects to date and plans to invest a further AU$75 billion over the next decade.
Market jitters
The financing comes as AirTrunk continues to access debt markets to fund growth across Asia Pacific, while its plans to raise capital through an equity listing have encountered a less favourable market. In October, the company postponed a planned Singapore real estate investment trust (REIT) initial public offering that could raise around US$1.5 billion, according to media reports.
The listing had been targeted for September or October but was put on hold amid market volatility and a sell-off in technology and AI stocks. AirTrunk has not announced a new launch date, although reports said it was aiming for a listing in early 2027.
AirTrunk has also secured substantial financing for its Japanese operations. In March, it announced a ¥191.6 billion (US$1.24bn) green loan to refinance existing debt and fund further development of its TOK1 campus in eastern Tokyo. The company said the campus could ultimately scale beyond 300MW, with construction underway on a phase adding more than 100MW of IT capacity.
At SYD3, AirTrunk said the green financing will support its target of net-zero Scope 1 and Scope 2 emissions by 2030 through measures including energy efficiency, renewable energy matching and lower-carbon technologies. The company is also targeting reductions in Scope 3 emissions associated with construction materials.
The expansion is being led by Australian construction firm A W Edwards. AirTrunk said it would continue working with local contractors, suppliers and community partners as the project progresses.