The private loan would be used to pay for data centres in the Malaysian state of Johor, the people said. The project, named Brightray DC, is scheduled to deliver its first phase by February (next year), according to its website.
Discussions are ongoing, and the deal’s details are subject to change, the people added. The loan could take the form of a one-year construction financing, or a convertible instrument, whereby the lender could become an equity investor, one of the people said.
The plan is just the latest example of a boom in data-centre financing in Asia, as companies across the region rush to meet the growing need for services linked to artificial intelligence (AI).
A Shanghai DC-Science spokesperson said “financing details are highly sensitive and proprietary, and we adhere to a strict policy of confidentiality,” without elaborating further.
Shanghai DC-Science was involved in a partnership with Malaysia-based real estate development firm MN Holdings Bhd (KL:MNHLDG) in 2023, according to a statement from MN Holdings.
Southeast Asia’s data consumption and computing growth will require a massive investment — as much as US$60 billion — to build out technology infrastructure, including server centres, towers and fibre, according a 2023 study by consulting firm Arthur D Little.
Malaysia’s state of Johor, which borders Singapore, has been a beneficiary of this booming demand. Global data-centre operator and developer Yondr Group Ltd is seeking private debt to fund a facility in the region.
Shanghai-based company GDS Holdings Ltd was also considering raising around RM10 billion (US$2.3 billion) in loans as of August, with the money being used to fund its data-centre operations in Malaysia.
Read also:
MN Holdings partners China firm to develop first high-performance data centre in Malaysia
Yondr seeking private loan of US$500m to build data centres in Johor — Bloomberg
GDS raises US$1b for data centre operations outside China
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