Singapore-based data center player DayOne Data Centers Ltd is seeking to double the size of an existing loan to as much as US$7 billion which, if approved would be the largest data center loan in Asia, Bloomberg reports quoting people familiar with the matter. The additional funding which would add to its original US$3.4 billion-equivalent facility, would be used to expand its operations in Malaysia. Talks are still ongoing, said the people. DayOne declined to comment when asked by reporters.
DayOne’s “amend and extend” loan initiative would include tranches in US dollars and Malaysian ringgit, and would still mature in 2030, the same as the original facility. This route extends the loan amount with the existing lenders at a minimal fee without having to get a fresh loan.
DayOne’s first data center campus in Johor, Nusajaya Tech Park, has been operational since 2023 while its second, Kempas Tech Park is still under development since 2024, according to the firm’s website.
Last August, DayOne announced a EUR 1.2 billion investment in a hyperscale data center campus in Lahti, Finland. Work has commenced on the 128 MW campus with operations scheduled to be ready for service in 2027.
In February, DayOne is said to be planning to raise up to US$5 billion in an initial public offering (IPO) in the US to be led by JPMorgan and Morgan Stanley, with the participation of Bank of America and Citigroup. The IPO, which could value the company at US$20 billion, is likely to take place this year, according to Reuters and Bloomberg.
According to Morgan Stanley, AI-related data center investment could reach US$2.9 trillion between 2025 and 2028, with 50 per cent needing external financing. It is a key driver of debt issuance in Asia Pacific fuelling massive loans. Lenders are willing to lend billions because of decade-long contracts locked in with tech giants which provide a guaranteed revenue for the duration of the debt. This is despite reservations raised by some quarters on whether these investments are able to deliver sustainable returns.
.