Global data center developer and operator Yondr Group Ltd. is seeking to raise approximately $500 million in private debt to finance a new project in Malaysia. According to sources familiar with the matter, the loan will support the construction of data centers in the southern state of Johor.
Bloomberg reported that the proposed loan, which could have a tenor of around five years, is part of Yondr’s efforts to capitalize on the growing demand for data center capacity in Southeast Asia. The region’s burgeoning tech industry, fueled by advancements in artificial intelligence and cloud computing, has driven significant investment in data center infrastructure.
Malaysia, particularly the state of Johor, has emerged as a prime location for data center development. Its proximity to Singapore, a major regional tech hub, coupled with favorable government policies, has made it a desirable destination for data center operators.
In May, Yondr successfully secured a loan of up to $150 million from the International Finance Corp (IFC) to fund the initial phase of a data center campus in Johor’s Sedenak Tech Park. The project aims to cater to the growing demand for AI-cloud workloads and enhance digital productivity in the region.