AirTrunk, the APAC data center company, has achieved a crucial milestone by completing a refinancing deal amounting to AU$16 billion ($10.37bn). This accomplishment is recognized as the biggest sustainability-linked refinancing in the region. Interestingly, the funding was achieved through the support of more than 60 global banks and financiers.

Essentially, the achievement enhances the value of the platform to over $AU18 billion ($11.67bn) and includes its greenfield and operational centers covering regions comprising Australia, Hong Kong, Singapore, Malaysia, and Japan.

In one of the biggest business deals in the realm of data center space worldwide, Blackstone and Canada Pension Plan Investment Board (CPPIB) acquired AirTrunk in 2024, with the deal totalling a staggering $16.1 bn. The refinancing deal followed on the heels of the acquisition as part of the organization’s development plan.

Robin Khuda, the founder and CEO of the company, believes that directing all AU$18 million toward sustainability demonstrates AirTrunk’s dedication to responsible scaling. He also stressed that the core aim of the company was to take initiatives focused on creating positive environmental and social impact, and an important digital infrastructure that drives the digital economy.

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Four distinct transactions make up the AU$16bn refinancing, with each one categorized as green loans or sustainability-linked loans (SLLs). Also, the financing benefits of these tools are linked to sustainability performance.

In other words, the financing is dependent on performance in energy and water efficiency, renewable energy adoption, and gender pay equity. Margin incentives, if any, will be channeled to the organization’s social impact fund. AirTrunk has also pledged to achieve carbon net zero by 2030.

Among the company’s other significant developments, it acquired a S$2.25bn (US$1.75bn) green loan to support the construction of AirTrunk SGP2, a hyperscale data center in Loyang, Singapore. Likewise, the company also finalized a green loan in Melbourne, the largest one in the Asia Pacific and Japan region so far. Additionally, it also happened to be the first worldwide to show interest rates linked to a social impact program.

What’s also noteworthy is that AirTrunk is the very first organization to incorporate disaster relief funding into its financing structure. Savings from these loans will contribute to emergency response efforts in local communities. Thus, these efforts will serve as an important example for socially responsible financing.

Luke Stephens, AirTrunk’s VP and treasurer, has referred to the AU$16bn refinancing project as a significant landmark in terms of the organization’s path to sustainable finance. To further emphasize its progress so far, he stressed AirTrunk’s innovation journey, comprising the launching of the industry-first SLL in 2021, followed by the implementation of a multi-transaction structure that blends efficiency with social purpose.

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Today, among the numerous funding tools for data center and telecommunication companies, the most recognized ones are SLLs and green bonds. Among its key benefits, cost is one, in terms of lower interest rates, which can only come to fruition when sustainability targets are met, not to mention channeling capital towards responsible growth.

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Source: DCD