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Yondr secures US$900 million loan for Johor data centre
DBS Bank, Deutsche Bank, HSBC and other global lenders join IFC in financing 98MW facility
Michael Marray   8 Jan 2025

Yondr Group, a developer of hyperscale data centres, has signed a US$900 million loan for the construction and initial operation of a 98-megawatt facility in Johor, Malaysia.

The loan was provided by a consortium of lenders including DBS Bank, Deutsche Bank, Global Infrastructure Partners ( a unit of BlackRock ), HSBC, International Finance Corporation ( IFC ), ING, and Natixis CIB. It follows an earlier funding from IFC for the same project.

The project is situated on a 72.5-acre site in the Sedenak Tech Park, which aims deliver 300 megawatts of critical IT capacity. Once completed, it will be the largest hyperscale data centre campus in Southeast Asia.

London-based Yondr was advised by Clifford Chance Singapore and Rahmat Lim & Partners. The lenders were advised by Milbank ( Singapore ) and Zul Rafique & Partners.

“Our Johor campus is a landmark development for Yondr and will become an important part of Asia’s infrastructure as demand for capacity continues to grow in the region, driven by the acceleration of artificial intelligence and digital services," says Yondr chief financial officer Chester Reid.

“Demand for digital infrastructure projects continues to grow exponentially, and this transaction is a testament to the financial markets' desire to invest in data centre companies like Yondr,” adds Dan Bartfeld, chair of Milbank‘s global project, energy and infrastructure finance group.

Development of phase one is on schedule. Energization was achieved in March 2024 and the project is expected to be ready for service this year.

Last October, DigitalBridge Group, an alternative asset manager based in Boca Raton, Florida, reached an agreement to acquire Yondr Group through one of its managed investment funds.

The strategic investment will drive the development of sustainable data centres, backed by long-term, stable revenue streams from investment-grade clients, DigitalBridge said at the time.