Chinese data centre firm GDS seeks record US$3.4 billion loan
The unit has data centres in countries including Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Japan
CHINESE data centre operator GDS Holdings is seeking a US$3.4 billion-equivalent loan for its data centre operations in Malaysia, sources familiar with the matter said.
The borrowing would be its biggest-ever loan. It would also be among the largest financings for the sector by any borrower in Asia.
The company’s international arm, DayOne, formerly known as GDS International, is aiming for a five-year facility, according to the sources. It would comprise a US$1.7 billion tranche and a RM7.5 billion (S$2.3 billion) piece, and is being syndicated to the broader market, said the sources.
Malaysia is turning into a beneficiary of Asia’s growing need for data centres to support the boom in artificial intelligence. The southern state of Johor – which sits across from the city-state of Singapore – has about 30 projects completed or under construction, plus 20 more awaiting approvals. Companies investing have included Microsoft and ByteDance.
Seven lenders have been appointed as mandated lead arrangers and bookrunners of the loan, including DBS Group Holdings, Malayan Banking and Standard Chartered, the sources said.
DayOne did not respond to a request for comment.
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The proceeds of DayOne’s loan will be for refinancing and capital expenditure purposes, the sources said.
The unit has data centres in countries including Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Japan. The company started building its presence in Johor in 2021 and launched its first facility there in 2023, according to its website.
GDS Holdings may try to list DayOne as soon as this year, Bloomberg News reported last month.
The entity last tapped the loan markets in December 2023 when it raised a RM1.27 billion syndicated green facility for the expansion of its campus in Johor. BLOOMBERG
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