IFC and Partners Invest USD 900 Million in Malaysia Data Center

The consortium, which includes DBS, Deutsche Bank, Global Infrastructure Partners (BlackRock subsidiary), HSBC, ING, and Natixis CIB, joined IFC in funding the first phase of the project in Johor Bahru. This initial 98-megawatt facility is part of a larger 72.5-acre campus that aims to deliver 300 megawatts of critical IT capacity upon completion. Once operational, the campus is expected to become one of the largest and most advanced data centers in the Asia Pacific, addressing the region’s surging demand for data processing capabilities.

In May, 2024, the IFC initially announced a USD 150 million financing package for the project, which included a USD 50 million bridge loan that proved to be instrumental in advancing the development and attracting additional funding from the consortium. The IFC has now committed its second tranche (totaling USD 100 million) as part of this latest financing round, marking a significant milestone in the project’s development.

“Our Johor campus is a landmark development for Yondr and will become an important part of Asia’s infrastructure as demand for capacity continues to grow in the region, driven by the acceleration of artificial intelligence (AI) and digital services,” said Chester Reid, Chief Financial Officer at Yondr. “Our success in securing a substantial loan facility to help complete the first phase of this campus highlights trust in the Yondr brand from leading financial institutions, following a number of major project milestones we have delivered this year in Europe and North America.”

The hyperscale data center campus in Johor Bahru will be certified under the Excellence in Design for Greater Efficiencies (EDGE) program—the IFC’s flagship green building certification system. The certification highlights the project’s commitment to resource efficiency and sustainable design.

The IFC served as the mandated lead arranger (MLA) for the financing package, with DBS, Deutsche Bank, HSBC, ING, and Natixis CIB also acting as MLAs, underwriters, and bookrunners.

This marks IFC’s third investment in Malaysia since establishing its operations in the country in 2023.

Judith Green, the World Bank Group’s Country Manager for Malaysia, is satisfied with the IFC’s commitment to a second tranche of financing for Yondr’s data center campus in Malaysia, stating, “This project will not only help to accelerate the digital transformation of the wider Asia-Pacific region, but also serves as a strong example of how IFC’s tailored financing solutions can de-risk projects and drive private-sector investment into emerging markets.”