AirTrunk Secures Record S$2.25 Billion Green Loan for Singapore Hyperscale Data Centre

AirTrunk has received its pivotal S$2.25 billion green loan to finance the development of its new hyperscale data centre in Singapore which is now the biggest loan for a data centre in Singapore History. In addition, this financing represents the largest green loan for data centre developments, further establishing the significance of sustainability in financing for digital infrastructure.

The loan proceeds will be used toward the construction of AirTrunk SGP2, a large-scale data facility located in Loyang, Singapore. When completed, the data centre will offer over 70 megawatts of cloud and artificial intelligence (AI) computing capacity for customers in Singapore and the greater Southeast Asia region. This major development is critical to meet rapidly growing demand for digital services whilst complementing sustainability initiatives.

Singapore has established itself as both a financial centre and a leader in the digital transformation front and AirTrunk's recent announcement is in line with the nation's agenda to further green finance. The Monetary Authority of Singapore (MAS), the nation’s financial services regulator, has stated openly its vision for Singapore to be a global hub for sustainable finance and transactions like these show Singapore's advancement in this regard. The financing structure displays strict sustainability related criteria and is aligned with AirTrunk's Green Financing Framework and Singapore-Asia Taxonomy for Sustainable Finance. Furthermore, there is an option in this loan to convert it into a sustainability-linked loan in the future, assisting AirTrunk to align with its evolving environmental targets.

A unique aspect of this financing is that all the financial incentives hopefully from the loan will be routed into AirTrunk's social impact fund. This fund will be aimed at increasing long-term benefits to the Singapore community, reaffirming AirTrunk’s ambition in both environmental sustainability and social benefit goals. The focus on both environmental and social impact allows the project to be seen as an example of responsible digital infrastructure development in Asia.

The loan is being arranged by a consortium of international and domestic banks, led by Crédit Agricole CIB, DBS Bank, and ING Bank. In total, 23 financial institutions have agreed to fund this financing, which reflects an extremely large confidence in AirTrunk's growth story and the company's ability to make good on its sustainability obligations. The large involvement of 23 banks also indicates the increasing demand from the financial sector for green projects that generate profits while being green and environmentally responsible.

At the heart of the project is sustainability through both design and operational design. The Loyang facility will have features that support energy efficiency as well as producing the lowest carbon footprint possible. The target is a Power Usage Effectiveness (PUE) score of 1.20, one of the lowest in Singapore, which means it less operational power than traditional data centres. This is a meaningful distinction, especially considering many data centres are energy-intensive, making them an ideal choice in conversations about sustainable digital growth.

The facility will not only feature energy efficient designs, but construction will utilize green steel and green concrete to minimize the embodied carbon of the building itself. These measures will help the data centre obtain a BCA Green Mark Platinum rating, which is the highest standard of building sustainability in Singapore. A certified Green Mark Platinum data centre enables AirTrunk to not only address operational emissions, but it will also mitigate the emissions consequences of construction and is a component that is often ignored when it comes to infrastructure projects.

AirTrunk's executive leadership stated that this transaction enhances the company's important role as a leader in sustainable finance and strengthens Singapore's position as a world-class financial ecosystem. The project shows how growth and responsibility can go hand-in-hand and achieves the aim of aligning digital growth and sustainability. Ultimately, the impact of loan size puts this impactful loan as a major milestone, however the significance is much wider as a leading example of financing models for the digital infrastructure sector.

Our Loyang facility will play a pivotal role in meeting the increasing demand for cloud capabilities and A.I. capabilities globally, and particularly throughout Southeast Asia. With the rapid uptake of artificial intelligence applications, the consumption of data is accelerating rapidly. Hyperscale data centres like AirTrunk SGP2 are designed for the scale, efficiency and resilience required to enable this digital transformation under more sustainable frameworks. 

The transaction also demonstrates the growing momentum for green finance in Asia. As governments, regulators and private sector demand more carbon neutrality, financial institutions are looking for avenues to finance projects that embed environmental, social and governance (ESG) principles. Data centres are a unique asset type in that they are often environmentally friendly when compared to alternative land uses. Traditionally, data centres have been aligned with electricity consumption and have had to justify their sustainability credentials under more scrutiny. By successfully obtaining this loan agreement under stringent sustainability standards, AirTrunk has also demonstrated a pathway for individuals and institutions in the data centre industry to raise capital whilst setting clear and measurable climate targets.

The choice of Singapore as the location for this facility is also deliberate. The city-state has become a centre of global finance and technology; the infrastructure, regulatory environment, and degree of international connectivity all makes it a highly sought-leading market for hyperscale data centres. In addition and distinct from traditional investment destinations, Singapore has embraced ambitious climate action plans. Projects like AirTrunk SGP2 strengthen the notions of the economical and sustainable development that the country seeks. The financing agreement has cemented a strong collaboration pathway between the institutions and a technology infrastructure provider that highlights the potential and role of public-private collaboration in advancing green growth.

For AirTrunk this development advances its leading position as a developer of digital infrastructure in Asia-Pacific. AirTrunk already has operational hyperscale data centres within the region, and the development of its facilities in Singapore with a sustainability first approach advance its profile as both a technology provider, but sustainability frontier as well. Ultimately, the bringing together of digital scale and environmental sustainability has set a benchmark that other organisations in the sector might consider.

The outcomes of this project truly reached beyond the borders of AirTrunk and also beyond Singapore, it demonstrates to the broader region how green finance can be applied to sectors not traditionally focused on sustainability, such as data infrastructure. As digitalisation continues to ramp up in Asia, the growth in demand for new data centres will be rapid, highlighting the need to ensure these new data centres are financed and constructed with sustainability being a priority to achieve advancement in technology that maintains our climate commitments.

In summary, AirTrunk's record breaking S$2.25 billion green loan is a milestone for the company and the industry. It signals a new era in how digital infrastructure is financed, showing that massive scale growth is possible with forthright commitment to environmental standards. The Loyang facility demonstrates that the future of data centres can be both digital and green, with low energy use, sustainable construction methods and commitment to a strong social impact. The deal shows Singapore is serious about being a leader in sustainable finance and digital technology, and more broadly, leaves a mark on Asia as a region where green loans can help facilitate the next wave of responsibly digitalisation.