In Short

• This is the biggest loan ever for a data centre in Singapore.
• The money will go towards building a new hyperscale data centre in Loyang, Singapore.
• The facility is highly energy efficient with a very low Power Usage Effectiveness score of 1.20.

AirTrunk has secured a landmark S$2.25 billion green loan to finance sustainable digital infrastructure in Singapore.

This loan sets a record as Singapore’s largest ever arranged for a data centre, and marks the biggest green loan in the sector.

The proceeds will be used to construct a new facility, AirTrunk SGP2, in Loyang, Singapore, which is expected to provide over 70 megawatts of cloud and artificial intelligence (AI) computing capacity for Singapore and Southeast Asia.

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The deal plays a leading role in supporting sustainable digital infrastructure financing and helping Singapore become a global green finance hub, which is the Monetary Authority of Singapore’s (MAS) vision. The loan, secured under strict sustainability criteria, shows the growing momentum in responsible investment across Asia.

Pursuant to the Singapore-Asia Taxonomy for Sustainable Finance and AirTrunk’s Green Financing Framework, the loan has an option to convert into a sustainability-linked loan (SLL) in the future. More importantly, all financial incentives from the loan will go into AirTrunk’s social impact fund, which aims to create long-term benefits for the Singapore community.

The financing was arranged by a consortium of international and local banks led by Crédit Agricole CIB, DBS Bank, and ING Bank. A total of 23 financial institutions were involved, which is a reflection of increased confidence in AirTrunk’s growth strategy and the sustainability of the project.

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The new data centre will come with several green features and is expected to get a BCA GreenMark Platinum rating, which is the top sustainability certification in the nation’s building sector.

It will have a Power Usage Effectiveness (PUE) of 1.20, one of the lowest PUE scores in Singapore, meaning it consumes much less energy than traditional data centres. In addition, the campus will use green concrete and green steel to reduce its embodied carbon footprint.

AirTrunk Founder & Chief Executive Officer, Robin Khuda, said: “This landmark transaction – Singapore’s largest loan and green loan for a data centre – strengthens AirTrunk’s leadership in sustainable finance and reflects strong market confidence in AirTrunk’s growth and sustainability strategy.

“This financing structure highlights the strength, depth, and international scale of Singapore’s financial ecosystem. We’re proud to contribute to the nation’s momentum as a world-leading green finance hub while scaling our platform responsibly to deliver lasting social impact for the Singapore community.”

On the whole, the project is an example of how green finance is being used to expand digital infrastructure in Asia with sustainability at the centre. This will strengthen Singapore’s position as a financial hub as well as a technological hub and drive its digital growth in a more environmentally responsible way.

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Source: AirTrunk