Blackstone’s AirTrunk seeks A$4.3 billion loan for Sydney data centre project

[SYDNEY] AirTrunk, a data-centre operator backed by Blackstone, is in talks with banks for a A$4.3 billion (S$3.9 billion) loan to back a new project in Australia, sources said, as it continues its debt-fuelled expansion in the Asia-Pacific.

Proceeds will support the construction of the more than 400-megawatt SYD3 hyperscale data centre, said the sources, asking not to be identified while discussing private matters.

Banks have been approached to underwrite the five-year deal, they said, adding that terms have not been finalised and can still change.

Representatives for AirTrunk and Blackstone declined to comment.

AirTrunk’s latest deal comes as lenders continue to plow billions of dollars into the sector to fund the artificial intelligence growth and data centres required to power it.

JPMorgan Chase’s latest estimates showed some US$4.1 trillion of debt is required to support the digital-infrastructure boom until 2030. The frantic expansion has also raised concerns of a credit-fuelled bubble. 

AirTrunk’s debt-binged expansion continues within the region.

Early June, it announced plans to invest around US$30 billion in India, after buying Lumina CloudInfra in April.

The firm, which is also marketing a US$2.3 billion syndicated loan for a Malaysia project, is planning to raise at least A$500 million via asset-backed bonds in the second half of the year. 

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AirTrunk operates data centres in Australia, Hong Kong, Japan, Malaysia and Singapore.

Blackstone and Canada Pension Plan Investment Board acquired the company in 2024, valued at A$24 billion then. BLOOMBERG