Sime Darby Property Bhd, a leading Malaysian property developer, is said to be in discussions with financial institutions for a RM3 billion (US$714mil) loan to finance the building of a data center to be leased to Google, according to Bloomberg News, citing people familiar with the matter. The loan tenure is five years with an option to extend for up to another two years, according to the sources, who also said that details can change at any time as talks are still ongoing.
Google had in 2024 announced plans to build a data centre at Sime Darby’s Elmina Business Park near Kuala Lumpur as part of its US$2 billion investment in Malaysia. Sime Darby Property is currently working on the data centre developments, the first being a 49-acre hyperscale data centre slated for completion in 2026, and a second one at a 77-acre site expected to be completed by 2027.
The current data center boom had led to record-breaking loan deals in recent months, for example, Bridge Data Centres, a Bain Capital-backed hyperscale data center platform, had in March secured a record US$ 2.8 billion financing to fund its data centre expansion.
According to Bloomberg, Sime Darby Property did not respond to a request for comment.