DayOne raises RM15 billion in green financing to develop Johor data centres
The sum sets a record for sustainable data centre funding in Malaysia
[KUALA LUMPUR] Singapore-based DayOne Data Centers has secured RM15 billion (S$4.6 billion) in dual-tranche green financing to support capital expenditure to develop its Johor data centres, setting a record for sustainable data centre funding in Malaysia.
OCBC, in a statement on Wednesday (Jun 11), said the financing facility comprises a RM7.5 billion Murabahah term financing facility and a US$1.7 billion offshore term loan. (Murabahah term financing is a method of financing following Islamic finance principles, in which a bank or financial institution sells an asset to a customer at a cost-plus-profit price, rather than charging interest.)
Structured under Green Loan Principles, the proceeds will be used for refinancing and capital expenditure for DayOne’s data centres that meet or are expected to meet Leadership in Energy and Environmental Design – or LEED – “Gold” certification or higher, in line with the United States Green Building Council’s standards.
The deal drew strong interest from local and international banks, achieving an oversubscription of two times, said OCBC.
OCBC Bank (Malaysia) and its Singapore-based parent acted as joint coordinator, mandated lead arranger and bookrunner (MLAB), as well as green financing coordinator; OCBC Bank was also the joint syariah adviser.
Tan Chor Sen, chief executive officer at OCBC Bank (Malaysia), said: “As a key MLAB, we supported DayOne with one of the highest underwriting commitments, reflecting our commitment to fostering a sustainable future that aligns with our leadership in responsible finance.”
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OCBC’s senior banker and head of investment banking, Tan Ai Chin, said the innovative “double-green” structure – merging Islamic and environmental, social and governance (ESG) financing – sets a new benchmark for the market. “We remain dedicated to delivering tailored ESG financing solutions to support sustainable digital infrastructure ecosystems,” she said.
Maybank is underwriting RM2.5 billion of the Islamic tranche – a third of the total and the largest share in what is now the biggest syndicated Islamic financing for data centres in the Asia-Pacific. The funding will support DayOne’s green data centres in the Johor-Singapore Special Economic Zone.
Khairussaleh Ramli, president and group chief executive officer of the bank, said in a separate statement: “This landmark transaction represents Maybank’s largest Islamic financing commitment to the data centre sector.”
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Other participating MLABs were CIMB Investment Bank, CIMB Bank Singapore, Credit Agricole Corporate & Investment Bank, DBS, Standard Chartered Bank Singapore, UOB and UOB Malaysia.
At the signing ceremony, Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz said the data centre sector offers a strong economic multiplier: “Every RM1 invested in data centres creates RM2.60 in economic impact. That translates into jobs, SME opportunities and real GDP growth.”
He added that digital investments are expected to contribute more than 25 per cent to Malaysia’s gross domestic product this year, potentially reaching nearly RM400 billion in cumulative GDP by 2030. These investments will fuel growth across AI research, digital healthcare, e-services and e-commerce.
In the first quarter of 2025, Malaysia approved nearly RM90 billion in investments, up 3.7 per cent from the year before, and created over 33,000 jobs across close to 1,600 projects. Of this, RM57.8 billion – nearly two-thirds – came from the services sector, driven by digital and communications projects.
Johor alone attracted over RM30 billion in investments during the period, with nearly 90 per cent going into digital infrastructure. Zafrul said: “This momentum is only set to grow. By 2030, Johor is expected to host 60 per cent of Malaysia’s total data centre capacity, cementing its role as South-east Asia’s digital hub.”
Malaysia also launched its Corporate Renewable Energy Supply Scheme on Wednesday, enabling hyperscale data centres and large power consumers to directly purchase renewable energy from producers, further strengthening the green credentials of digital infrastructure developments such as DayOne’s.
Headquartered in Singapore, DayOne is a fast-growing global digital-infrastructure platform with operations across Tier-1 and emerging markets, including Malaysia, Indonesia, Thailand, Japan and Hong Kong.
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