Data centre operator AirTrunk has secured a S$2.25 billion (US$1.65 billion) green loan in Singapore to finance the development of a new hyperscale facility, AirTrunk SGP2.
The financing is the largest loan and green loan ever arranged for a data centre in Singapore. It aligns with the Technical Screening Criteria of the Singapore-Asia Taxonomy for Sustainable Finance and AirTrunk’s Green Financing Framework.
Crédit Agricole CIB, DBS Bank and ING Bank acted as Global Coordinators and Sustainability Structuring Agents, working alongside a consortium of 23 other financial institutions. The Mandated Lead Arrangers and Bookrunners included MUFG Bank, Natixis CIB, Standard Chartered Bank (Singapore) and United Overseas Bank.
The deal begins as a green loan with the option to transition into a sustainability-linked loan. AirTrunk said all financial incentives from the loan will be directed to its social impact fund.
AirTrunk Founder and Chief Executive Officer Robin Khuda said: “This landmark transaction – Singapore’s largest loan and green loan for a data centre – strengthens AirTrunk’s leadership in sustainable finance and reflects strong market confidence in AirTrunk’s growth and sustainability strategy.”
Crédit Agricole CIB’s Head of Telecom Finance for Asia-Pacific, Jasmine Zhang, said the facility “sets a new benchmark for responsible infrastructure development in Asia,” while DBS Bank’s Amit Sinha noted that the financing “comes at a pivotal time as demand for computing power continues to surge across the region.”
ING Bank’s Krishna Suryanarayanan added that the deal reinforced AirTrunk’s standing as “a sustainability leader among data centre operators globally.” The new data centre, to be built in Loyang, will provide over 70 megawatts of cloud and artificial intelligence computing capacity for Singapore and Southeast Asia.
It has been designed to achieve a BCA Green Mark Platinum rating and a power usage effectiveness (PUE) of 1.20, one of the lowest levels in the market. The facility will also incorporate green steel and green concrete to lower embodied carbon.
