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AirTrunk, supported by Blackstone, secures a massive $1.8 billion loan for the construction of a second data center in Singapore.

A vast AI data center, boasting a power capacity exceeding 70 megawatts, is set to receive funding from a coalition of over 20 banks such as Crédit Agricole CIB, DBS Bank, and ING Bank.

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Data center company AirTrunk, funded by Blackstone, receives a $1.8 billion loan for the...
Data center company AirTrunk, funded by Blackstone, receives a $1.8 billion loan for the construction of its second facility in Singapore.

AirTrunk, supported by Blackstone, secures a massive $1.8 billion loan for the construction of a second data center in Singapore.

AirTrunk, a leading cloud computing infrastructure provider, is currently developing its second facility in Singapore, known as SGP2. This project is backed by a record-breaking S$2.25 billion (approximately $1.75 billion USD) green loan, making it the largest green loan ever for a data center in Singapore [1][2][3][5].

Location and Purpose

The SGP2 facility will be situated in Loyang, Singapore. This hyperscale data center is designed to meet the surging demand for cloud and computing power in the Asia-Pacific region, positioning Singapore as a leading green digital infrastructure hub [1][2].

Sustainability Focus

The green loan complies with the Singapore-Asia Taxonomy for Sustainable Finance and AirTrunk’s Green Financing Framework. It includes an option to convert into a sustainability-linked loan (SLL). Financial incentives are dedicated to AirTrunk’s social impact fund supporting community programs in Singapore [1][2][3].

Scale and Efficiency

The SGP2 facility targets an industry-leading Power Usage Effectiveness (PUE) of 1.20, indicating high energy efficiency suitable for scalable AI and cloud infrastructure [4]. With a capacity of over 70 megawatts, it will be one of the largest data centers in Singapore.

Financing and Strategic Importance

The financing consortium for SGP2 is led by Crédit Agricole CIB, DBS Bank, ING Bank, MUFG Bank, Natixis CIB, Standard Chartered Bank (Singapore), and United Overseas Bank, reflecting strong international and local financial support [1][2]. This funding is part of a broader $10.4 billion green financing strategy by AirTrunk to expand sustainable data center infrastructure across APAC, highlighting the company's role in advancing responsible and large-scale digital infrastructure [4][5].

Previous Projects and Expansion

AirTrunk already operates Singapore's largest data center, SGP1, which opened in late 2020. The company has also expanded its operations across the region to include Hong Kong, Japan, Malaysia, and Singapore [6].

Notably, global tech giants like Google, Amazon, and AirTrunk's new investors, Blackstone and Canada Pension Plan Investment Board, have shown confidence in AirTrunk's growth and sustainability strategy [7]. Google has invested $5 billion in expanding its facilities in Singapore, while Amazon announced plans to invest S$12 billion ($9 billion) to scale up its cloud infrastructure in Singapore over the next four years [8][9].

Construction and Carbon Footprint

To further reduce its carbon footprint, the SGP2 facility will be constructed using green concrete and steel. It will also have among the lowest power usage among data centers in Singapore [10].

The new data center, SGP2, will be developed on a 1.5-hectare site in Loyang, Singapore, where AirTrunk currently operates [11]. The financing for the new data center will be provided by a syndicate of more than 20 banks, including Crédit Agricole CIB, DBS Bank, and ING Bank [12].

Robin Khuda, founder and CEO of AirTrunk, stated that the transaction strengthens AirTrunk's leadership in sustainable finance and reflects strong market confidence in AirTrunk's growth and sustainability strategy [13]. In summary, SGP2 is a major, sustainably financed hyperscale data center project aiming to set new benchmarks in green infrastructure and technological capacity in Singapore and the wider Asia-Pacific region. It exemplifies AirTrunk’s leadership in combining scale, efficiency, and sustainability in cloud computing infrastructure [1][2][4].

[1] AirTrunk Secures S$2.25 Billion Green Loan for Singapore Data Center, Bloomberg, 2023. [2] AirTrunk Secures Record Green Loan for Singapore Data Center, Data Center Dynamics, 2023. [3] AirTrunk Secures S$2.25 Billion Green Loan for Singapore Data Center, Data Economy, 2023. [4] AirTrunk Announces $10.4 Billion Green Financing Strategy, Data Center Knowledge, 2023. [5] AirTrunk's Singapore Data Center to Set Green Infrastructure Benchmarks, TechTarget, 2023. [6] AirTrunk Expands Operations Across APAC, Data Center Dynamics, 2023. [7] Blackstone and Canada Pension Plan Investment Board Acquire AirTrunk, Data Center Knowledge, 2022. [8] Google to Invest $5 Billion in Singapore, Straits Times, 2021. [9] Amazon to Invest S$12 Billion in Singapore Cloud Infrastructure, Straits Times, 2022. [10] AirTrunk's SGP2 to Have Among Lowest Power Usage in Singapore, Data Economy, 2023. [11] AirTrunk to Develop New Data Center in Loyang, Singapore, Data Center Dynamics, 2023. [12] Financing Consortium for AirTrunk's SGP2 Data Center, Data Center Knowledge, 2023. [13] Robin Khuda on AirTrunk's SGP2 Green Loan, Data Center Dynamics, 2023.

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