DayOne seeks US$1 billion private credit for data centre expansion
[SINGAPORE] DayOne Data Centers Singapore is seeking a private credit loan of at least US$1 billion to fund its expansion plans, according to people familiar with the matter.
The proposed loan, which can be upsized by an additional US$250 million, is set to pay an interest of 9.5 per cent to 10 per cent, the people said, who asked not to be identified discussing private matters. The financing will have a four-year tenor and may include a payment-in-kind piece, they said.
The deal is still in early stages and could be subject to change, the people said. Singapore-headquartered DayOne did not respond to a request for comment.
Artificial intelligence advances are fuelling demand for data centre fundraisings in Asia, a region that has seen a series of record breaking loans. Some of these deals go beyond the traditional bank lending space, which is struggling to keep up with the rapid pace of expansion for data storage and processing.
Demand for data centre expansion in Asia is set to grow by about 32 per cent a year in the region through 2028, according to real estate services firm Cushman and Wakefield, outpacing expected growth of 18 per cent in the US.
Last week, DayOne, formerly the international arm of GDS Holdings, secured RM15 billion (S$4.5 billion) of multicurrency loans to support its green data centres in Malaysia's Johor state, Bloomberg News reported. The facility, which is its biggest-ever borrowing, is also among the largest syndicated financings for the sector by a borrower in Asia. BLOOMBERG
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