Bain Capital’s Bridge Data Centres seeks up to US$6 billion loan for Thailand expansion

[HONG KONG] Bain Capital-owned Bridge Data Centres (BDC) is in talks with lenders for a potential loan of up to US$6 billion, according to people familiar with the matter, in what would be one of the largest-ever borrowings in Asia for data centres.

Proceeds from the loan, which is likely to carry a 12-month tenor, would be used to fund the data centre operator’s expansion in Thailand, the people said. The talks are ongoing and details could change.

BDC’s funding plans underscore how the artificial intelligence boom remains a key driver of debt deals in the Asia-Pacific region, fuelling a wave of big ticket financings – even as some investors grow anxious about the potential impact. Its Singapore-based peer DayOne Data Centers is seeking to double an existing loan to as much as US$7 billion in what would be the largest facility for the sector by any firm in Asia.

Earlier this month, BDC unveiled plans to invest up to S$5 billion to boost its operations in its home base of Singapore. The firm has already secured water supplies to help sustain a planned campus in Thailand.

BDC declined to comment.

Moody’s Ratings expects at least US$3 trillion to flow into data-centre-related investments over the next five years, with much of the spending to be financed through debt. Still, the scale of the lending has sparked concerns on Wall Street about whether the industry will be able to deliver sustainable returns despite all the cash pouring in.

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BDC is a unit of Wintrix, formerly known as Chindata Group Holdings, the Chinese data centre operator that Bain Capital took private in 2023 in a deal worth about US$3.2 billion.

Last year, the Singapore-based firm secured a US$2.8 billion loan for its operations in Malaysia, its largest-ever lending facility at the time. BLOOMBERG