Yondr Group Ltd., a global developer and operator of data centers, is seeking private debt of about $500 million to fund a project based in Malaysia, according to people familiar with the matter.
The private loan, which could have a tenor of around five years, will back the construction of data centers in the southern state of Johor in Malaysia, according to people familiar with the matter. Discussions remain ongoing, and the deal’s details are subject to change, the people added, requesting anonymity discussing a private matter.
A spokesperson for Yondr declined to comment.
Yondr’s latest planned financing underscores how tech companies and financiers are bankrolling data centers across Asia to support an accelerating boom in artificial intelligence development and services. In August, Mubadala Investment Co. said it is investing in the London-based firm, marking the Abu Dhabi wealth fund’s latest foray into the sector.
The world’s biggest corporates are also set to splurge as much as $60 billion over the next few years as Southeast Asia’s young populations embrace video streaming, online shopping and generative AI.
Malaysia’s Johor — which borders Singapore — has been a particular beneficiary of this booming demand. In May, Yondr raised a loan of up to $150 million from the International Finance Corp to fund the first phase construction of a data center campus in Johor’s Sedenak Tech Park, according to the company’s press release. The project aims to facilitate regional businesses’ access to AI-cloud workloads, and boost digital productivity.
Shanghai-based company GDS Holdings Ltd. is also considering raising around 10 billion ringgit ($2.3 billion) in loans for its data center operation in Malaysia, Bloomberg had reported earlier, in what would be one of the largest financing for such a project in Asia.
