Shanghai DC-Science Co., a leading Chinese data center developer and operator, is actively seeking a substantial private debt financing of between $600 million and $700 million. This capital infusion is earmarked to fuel the development of a major data center project in southern Malaysia, known as Brightray DC.
Bloomberg reported that according to industry sources, the private loan will be utilized to cover the construction costs associated with the data centers, which are strategically located in the state of Johor. The initial phase of the Brightray DC project is slated for completion by February 2024.
While the specific terms of the financing deal are still under negotiation, it’s likely to involve a one-year construction loan or a convertible instrument, offering the lender the option to convert the debt into equity.
This move by Shanghai DC-Science aligns with the broader trend of increased data center investment across Asia. The region’s burgeoning demand for AI-driven services is driving the need for robust data infrastructure.
A spokesperson from Shanghai DC-Science acknowledged the sensitivity of financing details and declined to provide further comment. However, the company’s partnership with Malaysian real estate firm MN Holdings Bhd underscores its commitment to the Southeast Asian market.
