AirTrunk, a hyperscale data center specialist, has secured a ¥191.6 billion (US$ 1.21 billion) green loan to refinance existing debt and fund the next stages of its TOK1 hyperscale data center campus in eastern Tokyo, as demand for computing capacity grows with the expansion of artificial intelligence and cloud services.
The loan will fund capital expenditures for additional phases of TOK1, which can ultimately be expanded to more than 300 MW. The company recently began construction on an expansion that will add more than 100 MW of IT capacity to the campus to meet near term customer demand.
According to a press release, Sumitomo Mitsui Banking Corp. (SMBC), MUFG, Crédit Agricole CIB and Société Générale acted as global coordinators. Twelve banks participated as mandated lead arrangers and bookrunners, including the four coordinators, BNP Paribas, The Chiba Bank, DBS Bank, E.SUN Commercial Bank, Mizuho Bank, Natixis, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB).
Robin Khuda, founder and CEO, AirTrunk, said, “Japan is one of the world’s most important cloud and AI markets. AirTrunk has been investing deeply in Japan for this reason – to build the hyperscale platform that will underpin the country’s digital future and connect it to the broader region. This landmark financing enables us to accelerate the expansion of TOK1 and continue delivering the capacity our customers need today, while preparing Japan for the extraordinary compute demands ahead.”
Masato Hori, AirTrunk associate vice president, treasury Japan, said, “This is the largest data center financing ever completed in Japan and a testament to the deep collaboration between AirTrunk and our banking partners. The structure of the facility reflects our commitment to transparency, sustainability, and innovation in capital markets, and further strengthens AirTrunk’s financing platform across the region.”
Nori Matsushita, AirTrunk head of Japan, said, “This milestone reflects our credibility of delivering sustainable digital infrastructure at scale and the strength of our relationships with financial markets in Japan. As we expand TOK1, we remain focused on supporting local communities, investing in resilient infrastructure, and contributing to Japan’s digital transformation.”
Takehisa Manabe, general manager, global structured finance, Sumitomo Mitsui Banking Corporation, said, “AirTrunk’s TOK1 campus represents the scale, efficiency, and innovation required to support Japan’s rapidly expanding cloud and AI ecosystem. SMBC is proud to act as Global Coordinator for this landmark transaction, which demonstrates how green financing can channel capital toward mission critical digital infrastructure while advancing the nation’s GX agenda.”
Daisuke Bito, managing executive officer and head of Financial Solutions Group, MUFG Bank Ltd., said, “This financing showcases the important role that financial institutions play in enabling sustainable growth in Japan’s digital economy. As Global Coordinator/Structuring Bank and syndication lead, MUFG strongly shares AirTrunk’s commitment to energy efficiency and long term investment, which aligns with our priorities in responsible financing, and we are pleased to support the next phase of development at TOK1.”
Satoshi Oda, managing director and head of Corporate and Leveraged Finance/Distribution and Asset Rotation, Crédit Agricole CIB, said, “As a global leader in green and sustainable finance, Crédit Agricole CIB is proud to partner with AirTrunk on a project that sets a new benchmark for data centre financing in Japan. The transaction reflects growing investor confidence in high efficiency digital infrastructure that can meet the surging demand for compute capacity driven by AI and cloud technologies.”
Eugene Tan, Co head of Infrastructure and Telecom, Media & Technology for Asia Pacific, Societe Generale, said, “This milestone financing highlights the increasing convergence of sustainability and digital transformation. Societe Generale is delighted to support AirTrunk as it expands TOK1, delivering the resilient and low carbon infrastructure that Japan’s technology sector requires to thrive in the AI era.”
The financing was structured under AirTrunk’s Green Financing Framework and the loan will refinance existing facilities and fund development costs for the TOK1 expansion.
The facility is also tied to AirTrunk’s energy efficiency standards for its data centers which are designed to operate more efficiently than the regional average, reducing the amount of energy required for the same computing output. Margin incentives from the loan will be directed to AirTrunk’s Social Impact Fund, which supports programs in Japan focused on STEM education, digital access, biodiversity and conservation, sustainable innovation and disaster relief.
The financing comes as AirTrunk expands its Japanese operations such as the recently announced OSK2, its second hyperscale data center in Osaka, as well as a new Japan headquarters. AirTrunk’s total investment in Japan has surpassed ¥1.2 trillion, (US$ 8 billion)
across existing and planned projects. Its four Japanese campuses TOK1, TOK2, OSK1 and OSK2 are expected to provide about 530 MW of total capacity when fully built.