Chinese data center developer and operator GDS has raised MYR1.27 billion ($270m) in green financing for its Nusajaya Tech Park data center in Malaysia.

The green financing facility has been secured from four financial institutions: UOB Malaysia, Bank of China (Malaysia) Berhad, OCBC Bank (Malaysia) Berhad, and Standard Chartered Bank (Malaysia) Berhad.

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It is the largest green financing secured by the company to date, and the proceeds will be used to complete the development of Nusajaya Tech Park (NTP) data center campus plot 1 in Johor.

UOB Malaysia is serving as the sole coordinator and as joint green loan coordinator with Standard Chartered Bank (Singapore) Ltd.

"We are excited to announce our collaborations with these highly prestigious and forward-thinking banks. With their support, these green loans will fuel our business with green energy, empowering us to extend our reach and embark on a sustainable journey in Southeast Asia," said William Huang, chairman and CEO of GDS.

"As we set our sights on the future, we aspire to foster stronger bonds with local financing organizations, cultivating a dynamic ecosystem that champions green advancement and propels the digital economy on a regional scale."

Ng Wei Wei, CEO of UOB Malaysia said: "UOB has been supporting GDS in its regional ambitions through our strong connectivity and we are honored to be given the mandate as sole coordinator and joint MLAB for their maiden venture in Malaysia."

Wei continued: "Our financing for GDS's state-of-the-art green data center underscores our commitment to support the nation's net-zero ambitions and aspiration to be a leading regional data center hub."

Phase one of the NTP campus has a net floor area of 30,310 sqm (326,275 sqm) and an IT capacity of 69.9MW. The data center uses liquid cooling.

Plans for the data center campus were first shared in 2021. GDS broke ground in April 2022 and launched the data center in August 2023. Elsewhere in Johor, GDS is developing another data center campus at YTL’s upcoming Green Data Center Park.