Malaysia's STT GDC Secures $1.37 Billion Green Loan for Data Center Development
2026-08-14 15:45
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en.Wedoany.com Reported - ST Telemedia Global Data Centres (STT GDC) has secured a $1.37 billion (approximately RM5.6 billion) green financing facility to fund the development of its flagship data center campus in Johor. The financing package includes a green loan facility supporting the first phase of the campus construction, ensuring long-term capital deployment aligns with the goals of sustainable, resilient, and energy-efficient digital infrastructure.

A consortium of financial institutions participated in the green financing facility. United Overseas Bank (Malaysia) served as the sole coordinator and mandated lead arranger, while OCBC Bank (Malaysia), Standard Chartered Bank Malaysia, and CIMB Bank acted as mandated lead arrangers.

The STT Johor campus, located in the Nusa Cemerlang Industrial Park in Iskandar Puteri, is currently under development with a planned IT load capacity of 166 MW. Situated just 15 kilometers from Singapore, the campus supports the Johor-Singapore Special Economic Zone (JS-SEZ), which aims to strengthen cross-border economic cooperation between Malaysia and Singapore.

The facility will support enterprises requiring scalable and resilient digital infrastructure to meet the demands of cloud computing, artificial intelligence, high-performance computing, and next-generation digital workloads. The first building, STT Johor 1, is planned with an IT load capacity of 16 MW and is expected to be completed by 2027.

Nelson Lim, Group Chief Financial Officer of STT GDC, stated in a release that the green loan facility reinforces the company's approach to embedding sustainability into the financing, design, construction, and operation of its data centers. He noted that as demand for cloud computing, artificial intelligence, and other digital workloads grows, prudent long-term capital is essential to building resilient, sustainable infrastructure that meets customer needs.

The green loan facility is part of STT GDC's broader strategy to integrate sustainability into every stage of its operations. According to the company's latest ESG report, 83.2% of its electricity consumption in 2025 came from renewable sources, with carbon intensity reduced by 70.5% against the 2021 baseline—three years ahead of its 2028 target. The company also achieved an average PUE (Power Usage Effectiveness) of 1.44, a 13% improvement over the 2020 baseline; during the same period, WUE (Water Usage Effectiveness) improved by 41.2% against the 2020 baseline.

During the construction of the STT Johor facility, STT GDC launched a community talent development program aimed at cultivating data center professionals and building a talent pipeline for the facility's operations. In April this year, the company partnered with the Johor Talent Development Council, Universiti Teknologi Malaysia, and EPI Group to launch a dedicated program providing foundational training in data center infrastructure, network concepts, and compliance standards. The program is part of a five-year initiative that funds and trains up to 15 students and graduates annually. STT GDC also plans to offer internships to up to 5 students per year, providing hands-on experience in operational environments, project coordination, and professional work practices relevant to careers in the data center and related industries.

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