DayOne Seeks Record $3.4 Billion Financing for Johor Data Center Expansion

DayOne, a leading data center developer and operator in Asia-Pacific, is seeking a loan of up to $3.4 billion for its data center operations in Johor, Malaysia. If approved, this would be one of the largest financings in Asia’s data center industry and the largest ever for DayOne. The financing, sought over five years, includes $1.7 billion in U.S. dollars and 7.5 billion Malaysian Ringgit (approximately $1.7 billion) for refinancing and capital expenditure. Financial institutions DBS, Maybank, and Standard Chartered are among seven banks appointed as lead arrangers and bookrunners.

This financing is aligned with DayOne’s strategic expansion in Johor, where since 2021, they have invested MYR 14.33 billion in Nusajaya Tech Park and Kempas Tech Park and launched their first data center in 2023. Johor is becoming a hotspot for data center investments, with around 30 projects completed or underway, and another 20 pending approval, with major investors like Microsoft and ByteDance.

In December 2023, DayOne secured a MYR 1.27 billion green syndicated loan to expand its Johor campus. The new larger-scale financing will support the expansion of DayOne’s Southeast Asia operations, aiming to increase regional data center capacity to 500 megawatts within three years.

Industry analysts highlight the growing demand for AI computing power as a driving force for data center expansion. Goldman Sachs predicts that global AI data center investments will exceed $200 billion by 2025. Malaysia’s proximity to Singapore, low electricity costs, and supportive policies are rapidly establishing it as an emerging data center hub in Asia.

Additionally, it is reported that DayOne is preparing for a pre-IPO process to accelerate its global development strategy. The company currently operates data center nodes across Asia, including in Singapore, Indonesia, Thailand, Hong Kong, and Japan, forming an interconnected platform network in Southeast Asia.