Singapore-based data center developer DayOne raises ~$3.67B, including a ~$2.4B offshore term loan facility, from seven banks to fund its Malaysia expansion

Major banks are underwriting significant debt facilities for data center development in Malaysia, indicating strong investor confidence in the region's digital infrastructure growth.

Singapore-based data center developer DayOne has secured expanded financing for its Johor, Malaysia data center project, bringing its total funding platform to RM30 billion (approximately $3.67 billion USD). This latest tranche includes a RM15 billion multi-currency financing from a consortium of seven banks: CIMB, Credit Agricole CIB, DBS, Maybank, OCBC, Standard Chartered, and UOB. The new funding comprises a $2.4 billion offshore term loan facility and a RM5.5 billion Murabahah facility. This development comes as Malaysia is projected to become one of Asia’s largest data center markets, with supply capacity expected to grow significantly by 2030, driven by increasing demand for cloud computing, AI, and digital services in the Asia-Pacific region. DayOne, established in 2022, has already expanded its operations across Asia and Europe.

The substantial financing package underscores Malaysia's strategic importance as a digital infrastructure hub in Asia, attracting significant investment for data center development due to its connectivity, infrastructure, and market proximity. This influx of capital positions Malaysia to capitalize on the escalating demand for cloud computing, AI, and digital services across the Asia-Pacific.

DayOne's successful large-scale funding, coupled with its recent IPO filing, signals a maturing market for data center infrastructure providers and highlights the intense competition and capital requirements within the sector. The scale of these investments will likely accelerate the build-out of hyperscale facilities, potentially leading to increased capacity and influencing pricing dynamics in the regional market.