Major Investment in Johor Bahru Hyperscale Data Center
The International Finance Corporation (IFC) has collaborated with six global financial institutions to provide over USD 900 million in financing for Yondr Group’s hyperscale data center campus in Johor Bahru, Malaysia. This substantial funding will support the development of a state-of-the-art facility aimed at meeting the growing data processing needs of the Asia-Pacific region.
Consortium of Financial Powerhouses
The financing consortium comprises prominent names such as DBS, Deutsche Bank, Global Infrastructure Partners (a subsidiary of BlackRock), HSBC, ING, and Natixis CIB. Together, they joined IFC in funding the first phase of the project, which includes a 98-megawatt data center. This facility is part of a larger 72.5-acre campus projected to deliver a total IT capacity of 300 megawatts upon full completion.
Once operational, the Johor campus is set to become one of the largest and most advanced data centers in the Asia-Pacific region, catering to the surging demand for digital infrastructure driven by artificial intelligence (AI) and digital transformation.
Financing Timeline: Key Milestones
Early Funding Initiatives
In May 2024, the IFC announced an initial USD 150 million financing package, including a USD 50 million bridge loan. This early commitment played a crucial role in accelerating project development and attracting additional investors.
Second Tranche Secured
Building on this progress, the IFC has committed an additional USD 100 million as part of the latest financing round. The second tranche underscores IFC’s confidence in the project’s potential to transform Malaysia’s digital landscape.
Industry Leader Perspectives
Chester Reid, Chief Financial Officer at Yondr Group, emphasized the project’s significance, stating, “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.”
Reid further highlighted the trust placed in Yondr by leading financial institutions, noting their recent successes in delivering major projects across Europe and North America.
EDGE Certification: A Commitment to Sustainability
Excellence in Design for Greater Efficiencies
The Johor Bahru campus will achieve certification under the Excellence in Design for Greater Efficiencies (EDGE) program—the IFC’s flagship green building certification system. This certification underscores the project’s commitment to sustainable design and resource efficiency, aligning with global environmental standards.
Role of the IFC
Acting as the mandated lead arranger (MLA), the IFC spearheaded the financing package, with DBS, Deutsche Bank, HSBC, ING, and Natixis CIB also contributing as MLAs, underwriters, and bookrunners.
Supporting Malaysia’s Digital Transformation
Strategic Importance
This marks the IFC’s third investment in Malaysia since it established operations in the country in 2023. The project aligns with Malaysia’s digital transformation goals and strengthens the nation’s role as a critical hub for data processing in the Asia-Pacific region.
World Bank Group’s Perspective
Judith Green, the World Bank Group’s Country Manager for Malaysia, commended the IFC’s commitment, 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.”
FAQs
What is the purpose of Yondr’s Johor Bahru data center?
The facility aims to meet the growing demand for data processing capabilities in the Asia-Pacific region, driven by trends such as AI and digital services.
How much capacity will the Johor campus deliver?
Upon full completion, the campus is expected to provide 300 megawatts of critical IT capacity.
What makes this data center project unique?
The project stands out due to its scale, advanced technology, and EDGE certification for sustainable design, making it one of the most significant developments in the region.
Who are the key financial backers of the project?
The financing consortium includes IFC, DBS, Deutsche Bank, Global Infrastructure Partners, HSBC, ING, and Natixis CIB.
How does this project impact Malaysia’s digital economy?
The data center supports Malaysia’s role as a digital hub, enabling digital transformation and attracting significant foreign investment.
