Two major data center operators in Asia have secured their largest loans to date within a week, with some funds allocated for expansion in Malaysia.

The country is emerging as a key hub for data centers, driven by increasing demand linked to AI advancements.

These deals highlight growing investor interest in the data center industry, including from banks and real estate firms.

Cushman and Wakefield estimates demand for data centers in Asia will grow by 32% annually through 2028, far outpacing the US forecast of 18%.

Yemi Tepe, a partner at Morrison Foerster, noted rising interest from various capital providers in the Asia-Pacific region.

The shift of tech multinationals diversifying operations beyond China has further solidified Southeast Asia’s role as a data center hotspot.