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SG data center firm DayOne seeks to increase loan to $7b

DayOne Data Centers Ltd. is seeking to double an existing loan to as much as US$7 billion to fund expansion in Malaysia in what would be the largest borrowing for the sector by any firm in Asia, people familiar with the matter said.

DayOne is a Singapore-based data center operator that was once an international affiliate of Chinese data center operator GDS Holdings Ltd.

The increase would be a leap from the original US$3.4 billion-equivalent facility and the ‘amend and extend’ loan would include tranches in US dollars and Malaysian ringgit with a 2030 maturity.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

The original loan backed Johor growth and reinforced Malaysia as an operations base, while “largest in Asia” lacks support

  • A RM 15 billion (US$3.54 billion) equivalent multi-currency facility matches references to a US$3.4 billion-equivalent financing package for refinancing and capex tied to DayOne’s Johor, Malaysia data centers 1.
  • The deal used two tranches rather than one standard loan. It included a MYR 7.5 billion Murabahah (an Islamic finance structure often used as a cost-plus financing arrangement) term facility plus a US$1.7 billion offshore term loan, with part of the proceeds aligned to green loan principles 1.
  • The financing fits the Johor–Singapore Special Economic Zone (JSSEZ), a bilateral effort to draw investment and strengthen cross-border economic ties. Lexology links DayOne to MYR 15 billion of multicurrency dual-tranche financing for Johor data centres 2.
  • DayOne calls Johor its largest market across Asia-Pacific operations. It also plans a regional operations and training center in Johor, intended to train more than 1,000 data center operations engineers over time, plus an expanded Global Shared Services Center (GSSC), a centralized back-office and operations support unit, in Kuala Lumpur that could employ more than 200 local professionals at full scale 3.

DayOne’s funding stack supports multi-region growth, while broader “blueprint” claims remain unproven

  • DayOne cites large equity rounds plus mezzanine debt, financing that sits between senior debt and equity in repayment priority. It announced definitive agreements for over US$2.0 billion in Series C equity after an aggregate US$1.9 billion across Series A and B in 2024, and it also reported an up to €1 billion mezzanine facility in 2025 from Brookfield and a sovereign investor 4.
  • The company also describes a cross-border “hub-and-spoke” SIJORI (Singapore–Johor–Riau Islands) model linking Singapore, Johor (Malaysia) and Batam (Indonesia) 5.
  • Use in other tech corridors remains a possibility rather than an established template.
  • The effort also includes supply chain localization plus workforce development, which aims to keep more high-value operating roles in Malaysia 3.

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