Proceeds of the five-year facility would be used to refinance some of the firm’s existing loans and fund its expansion plans in Malaysia, said the people, who asked not to be identified as the matter is private. Discussions are ongoing and details could change, the people said. 

Potential financiers — comprising international and regional banks — were told that Chindata’s Malaysian campus will be used by ByteDance Ltd, among others.

A representative at Bain Capital declined to comment, while Chindata and ByteDance didn’t respond to a request for comment.

Chindata’s planned loan comes after it obtained nearly US$500 million in July to refinance an existing facility for its Malaysian unit. It also underscores the vast financing needs for data centres, as firms in the region look to meet the growing demand for services linked to artificial intelligence. 

Southeast Asia’s data consumption and computing growth will require investments of as much as US$60 billion in infrastructure, which includes server centres, towers and fiber networks, according to a 2023 study from consulting firm Arthur D Little.

The state of Johor, which borders Singapore, has been a beneficiary of this booming demand. Global data-centre operator Yondr Group Ltd is seeking private debt to fund a facility in Asia, while Shanghai-based GDS Holdings Ltd is raising around RM10 billion (US$2.3 billion) to fund its operations in Malaysia.

Founded in 2015, Chindata runs hyperscale data centres in China’s major economic centres, including Greater Beijing, the Yangtze River Delta around Shanghai, and the Greater Bay Area in the country’s south. The firm also has operations in India, Malaysia and Thailand, according to its website. Bain Capital took the company private last year, in a deal worth about US$3.2 billion.

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