Landmark Islamic and green financing supports DayOne’s data centre expansion in Johor’s digital corridor
In a historic financing breakthrough, Singapore-based DayOne Data Centers has clinched RM15 billion in green Islamic funding to develop high-performance data centres in Johor’s tech parks within the Johor-Singapore Special Economic Zone (JS-SEZ).
Landmark Dual-Tranche Deal
DayOne secured a record-breaking RM15 billion (S$4.6 billion) in dual-tranche financing, structured under the Green Loan Principles. The facility comprises RM7.5 billion in onshore Murabahah Islamic financing and a US$1.7 billion (approx. RM7.5 billion) offshore term loan. This marks Malaysia’s largest syndicated green Islamic financing in the data centre sector to date.
Key financiers include Maybank, OCBC, DBS, UOB, CIMB, Crédit Agricole, and Standard Chartered. The deal received strong support with a 2x oversubscription, reflecting regional confidence in Johor’s role in digital infrastructure.
Strategic Sites Within JS-SEZ
The anchor data centres will be developed in Nusajaya and Kempas Tech Parks—strategic locations within the JS-SEZ aimed at bridging digital ecosystems between Malaysia and Singapore. These projects are expected to meet or exceed LEED Gold environmental certifications, aligning with both Islamic finance and ESG principles.
“This landmark transaction represents Maybank’s largest Islamic financing commitment to the data centre sector,” said Group CEO Khairussaleh Ramli. Maybank alone is underwriting RM2.5 billion, the largest share of the Islamic tranche.
A Digital Bridge Across The Causeway
Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz, who witnessed the signing, highlighted the broader economic impact: “Every RM1 invested in data centres creates RM2.60 in economic impact,” pointing to benefits across jobs, SME growth, and GDP expansion.
The minister also revealed that Johor attracted over RM30 billion in investments in Q1 2025, nearly 90% of which went into digital infrastructure. This momentum supports the projection that by 2030, Johor will host 60% of Malaysia’s total data centre capacity.
ESG Meets Shariah Innovation
The financing deal is hailed as a “double-green” benchmark by OCBC, combining Islamic finance with environmental sustainability. OCBC and its Malaysia arm acted as joint coordinators, lead arrangers, and bookrunners, showcasing their commitment to responsible finance.
OCBC’s senior banker Tan Ai Chin emphasized the role of tailored ESG solutions in supporting the region’s sustainable digital future. The funds will cover both capital expenditure and refinancing costs for DayOne’s Johor centres, which align with the U.S. Green Building Council standards.
Supporting A Regional Digital Hub
UOB Malaysia’s CEO Ng Wei Wei said the deal strengthens the digital backbone across ASEAN: “We are not only supporting Malaysia’s digital economy but also enabling businesses on both sides of the Causeway to thrive in the digital age.”
Singapore-based DayOne currently operates data centres across major Asian cities including Jakarta, Bangkok, Hong Kong, and Tokyo. The JS-SEZ development marks its boldest move yet to establish Southeast Asia as a premier cloud and digital services destination.
Renewable Future Enabled
To power this infrastructure sustainably, Malaysia launched its Corporate Renewable Energy Supply Scheme on June 11. This allows large power users like data centres to source green energy directly, reinforcing the environmental credentials of projects such as DayOne’s.
With digital investments expected to contribute over 25% to Malaysia’s GDP this year and RM400 billion cumulatively by 2030, the DayOne financing signals a powerful step toward a tech-forward, green ASEAN.
The DayOne RM15 billion financing is more than just a milestone for Malaysia—it signifies Johor’s emergence as a digital epicentre, bolstering bilateral digital growth with Singapore. For ASEAN, it reinforces the region’s position as a nexus for sustainable data infrastructure and cross-border tech innovation.
Sources: The Edge Malaysia (2025) , Business Times (2025)
Keywords: DayOne Data Centers, Johor Data Centres, Green Islamic Financing, JS-SEZ Malaysia, Digital Economy Malaysia
