GDS Holdings Ltd., a Chinese data center operator, is seeking a US$3.4 billion loan to support its operations in Malaysia.

Managed through its international unit, DayOne, the five-year facility is split into two parts: US$1.7 billion and 7.5 billion ringgit (US$1.7 billion).

The loan aims to refinance obligations and fund capital expenditures, with seven lenders, including DBS, Maybank, and Standard Chartered, acting as lead arrangers.

Malaysia, especially Johor, has become a data center hub due to AI-driven infrastructure demand.

The state has around 30 completed or ongoing projects, with 20 more pending approval. Major companies like Microsoft and ByteDance have also invested in the area.

DayOne, which began Johor operations in 2021, secured a 1.27 billion ringgit (US$285.68 million) green facility in December 2023 for expansion. GDS is also reportedly considering listing DayOne this year.