DayOne Data Centers Singapore Pte Ltd is said to be seeking a private credit loan of at least US$1 billion which can be upsized by an additional US$250 million to fund its expansion plans, according to Bloomberg News, quoting people familiar with the matter. The proposed loan would have a loan tenure of four years with interest rate set at between 9.5% and 10%, and may include payment-in-kind, said the people. Discussions are still ongoing with terms subject to change. Meanwhile, DayOne has not responded to requests for comment from the press.
Just two weeks ago, DayOne has secured US$3.6 billion multicurrency financing, its biggest-ever borrowing to support its green data centres in Johor, as reported by us. The facility made global headlines as it is among the largest syndicated financings for the sector by a borrower in Asia.
This followed news a week earlier of the company’s US$ 411 million financing secured for its Batam data center projects from DBS and UOB in the largest ever rupiah-denominated data centre financing deal.
Demand for data centre expansion in Asia is set to grow by about 32% a year in the region through 2028, according to real estate services firm Cushman and Wakefield, outpacing expected growth of 18% in the US. Artificial intelligence advances are fuelling demand for data centre fundraisings in Asia, a region that has seen a series of record breaking loans. Some of these deals go beyond the traditional bank lending space, which is struggling to keep up with the rapid pace of expansion for data storage and processing.