GDS Holdings Seeks $3.4 Billion Loan for Malaysian Data Centers

Mar 17, 2025
GDS Holdings is pursuing a $3.4 billion loan to support its data center operations in Malaysia, marking its largest financing effort to date.

GDS Holdings is seeking a record $3.4 billion loan to bolster its data center operations in Malaysia. This financing effort, which would be the company's largest to date, includes a $1.7 billion tranche and a RM7.5 billion (approximately $2.3 billion) portion. The loan is being syndicated to the broader market, with seven lenders, including DBS Group Holdings, Malayan Banking, and Standard Chartered, appointed as lead arrangers and bookrunners.

The funds from this loan will be used for refinancing and capital expenditure purposes. GDS Holdings' international arm, DayOne, which was formerly known as GDS International, is spearheading this initiative. The company has been expanding its presence in Johor, Malaysia, since 2021, launching its first facility there in 2023.

This move comes as Malaysia benefits from Asia's increasing demand for data centers, driven by the boom in artificial intelligence. Johor, located near Singapore, has become a hub for data center projects, with companies like Microsoft and ByteDance investing in the region.

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