Landmark dual-tranche loan backs Southeast Asia’s largest sustainable data centre expansion
Singapore-based DayOne Data Centers has secured RM15 billion (S$4.6 billion) in green and Islamic financing to power its upcoming hyperscale data centres in Johor. The deal marks Malaysia’s biggest-ever sustainable digital infrastructure funding.
Landmark Dual-Tranche Financing
On June 11, DayOne Data Centers, a Singapore-headquartered digital infrastructure firm, secured a RM15 billion (approx. US$3.2 billion) financing facility. The package includes RM7.5 billion in Islamic Murabahah term financing and US$1.7 billion in offshore loans. Coordinated by OCBC and Maybank, the transaction drew strong investor interest, oversubscribed by two times, setting a record in Malaysia’s green and Islamic capital markets.
Green and Syariah-Conscious Design
Structured under the Green Loan Principles and compliant with Islamic financing, the funds will refinance and support capital expenditure for DayOne’s projects in the Johor-Singapore Special Economic Zone (JS-SEZ). These data centres, located in Nusajaya and Kempas Tech Parks, are built to meet or exceed LEED “Gold” certification, aligning with global energy efficiency and environmental standards.
Regional Banks Lead the Way
OCBC and its Malaysia unit acted as joint coordinator, mandated lead arranger, bookrunner, and green financing coordinator. Maybank, Malaysia’s largest bank, underwrote RM2.5 billion—its biggest Islamic financing to the data centre sector to date. Other financial powerhouses involved include CIMB, DBS, Crédit Agricole, Standard Chartered, and UOB, all reinforcing confidence in Johor’s role as a digital hub.
Government Backing and Economic Promise
Malaysia’s Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, lauded the deal, noting that every RM1 invested in data centres yields RM2.60 in economic impact. He projected digital investments could contribute more than 25% to Malaysia’s GDP in 2025, with cumulative impact nearing RM400 billion by 2030. In Q1 2025 alone, Johor pulled in RM30 billion in investments—nearly 90% directed to digital infrastructure.
Strengthening Malaysia-Singapore Connectivity
UOB Malaysia CEO Ng Wei Wei said the project “builds a critical bridge between Malaysia and Singapore’s digital ecosystems,” supporting cloud, AI, and digital commerce growth. With Johor expected to host 60% of Malaysia’s data centre capacity by 2030, the region is cementing its status as Southeast Asia’s digital powerhouse.
Clean Energy Future for Digital Growth
Malaysia also launched its Corporate Renewable Energy Supply Scheme on the same day, enabling data centres like DayOne’s to procure clean energy directly from producers—boosting both environmental sustainability and investment attractiveness in the region.
DayOne’s RM15 billion financing marks a new chapter in Southeast Asia’s digital infrastructure evolution. By combining Islamic and green finance, it underscores the region’s capacity for innovation and sustainability. For Indonesia and Singapore, Johor’s rising prominence signals deeper digital connectivity and expanding economic opportunities across ASEAN’s fast-growing tech corridor.
Sources: The Business Times (2025) , The Edge Malaysia (2025)
Keywords: DayOne Johor, Data Centre Financing, Green Loan, Islamic Financing, JS-SEZ Development, Digital Infrastructure
