Yondr, a prominent data center developer, has secured a significant $900 million in financing for its upcoming 98MW data center campus in Johor, Malaysia. This announcement, made just before Christmas, underscores the growing demand for data infrastructure in Southeast Asia, particularly as businesses and industries ramp up digital services and artificial intelligence (AI) capabilities. This financing will help fund the construction and initial operations of Yondr’s data center, setting the stage for its expansion in the region.
Loan Facility Breakdown and Key Lenders
The loan facility, which exceeds $900 million, is being provided by a consortium of high-profile lenders. The participating financial institutions include DBS Bank, Deutsche Bank, Global Infrastructure Partners (part of BlackRock), HSBC, the International Finance Corporation (IFC), ING, and Natixis CIB. This diverse group of lenders reflects the strategic importance of the Johor campus as a key component in Asia’s rapidly expanding digital infrastructure.
Project Scope and Long-Term Potential
Yondr’s Johor data center campus is strategically located in Sedenak Tech Park, a technology-driven area within Johor, Malaysia. Once completed, the campus will offer 300MW of critical IT capacity, making it one of the largest hyperscale data center facilities in Southeast Asia. This project, first announced in March 2022, is a crucial part of Yondr’s expansion into the Asia-Pacific region, providing essential infrastructure to support increasing demand for cloud services, AI, and digital transformation initiatives across Asia.
The Full Build-Out: Phases of Development
The campus will be developed in multiple phases, with Phase One scheduled to be delivered later this year. This initial phase will see the deployment of the first 98MW of capacity. The overall build-out is expected to be completed in the coming years, with the full campus targeting 300MW at its peak. The site’s energization in March 2024 marked a key milestone, ensuring that Yondr’s ambitious timeline remains on track.
Yondr’s Vision for Southeast Asia’s Digital Future
Yondr’s investment in Johor reflects the company’s long-term commitment to Southeast Asia, where demand for data centers is rapidly growing due to the accelerating adoption of AI and digital services. Chester Reid, CFO at Yondr, commented: “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.” The Johor campus will position Yondr as a key player in the region’s digital economy, enabling businesses across Southeast Asia to scale their operations and enhance their technological capabilities.
Strategic Importance of Johor in the Asia-Pacific Market
Johor is emerging as a key hub for data center developments in Southeast Asia, driven by its proximity to Singapore, which has become one of the largest data center markets globally. Malaysia’s Johor region offers a strategic advantage due to its favorable energy costs, robust connectivity, and political stability. These factors make Johor an ideal location for Yondr’s ambitious data center campus, catering to the growing demand for cloud services, data storage, and networking in the region.
Yondr’s Global Expansion and Impact
Beyond its Malaysian project, Yondr is making significant strides in global data center development. The company’s current portfolio includes over 878MW of contracted capacity, with 58MW already operational. In addition to its Malaysian campus, Yondr has projects underway in Virginia, the UK, Indonesia, Japan, Germany, the Netherlands, and India. This broad geographic footprint positions Yondr as a leading player in the global data center industry, helping to drive the digital transformation of businesses worldwide.
Yondr’s Acquisition by DigitalBridge
In October 2024, DigitalBridge, a global infrastructure investment firm, announced its acquisition of Yondr. While the terms of the acquisition were not disclosed, this move signals DigitalBridge’s commitment to expanding its presence in the data center sector. Yondr’s expertise in data center development and operation will undoubtedly complement DigitalBridge’s existing infrastructure assets, creating new opportunities for growth and innovation in the sector.
The Role of International Partners and Advisors
Yondr’s financing for the Johor data center was made possible through the support of key international partners and legal advisors. The company worked with Clifford Chance Singapore and Rahmat Lim & Partners to secure the loan, while the lenders were advised by Milbank LLP Singapore Office and Zul Rafique & Partners. These partnerships have been instrumental in ensuring the successful financing and execution of Yondr’s expansion plans.
Yondr’s Financial Track Record and Future Outlook
Yondr’s ability to secure financing for the Johor campus is a testament to its strong financial position and the confidence that investors and lenders have in its growth trajectory. With a contracted capacity of 878MW and a strong pipeline of projects across multiple regions, Yondr is well-positioned to capitalize on the increasing demand for data center infrastructure worldwide.
As demand for data centers continues to grow in tandem with the rise of AI, cloud computing, and digital services, Yondr’s role in meeting this demand will become even more critical. The Johor campus is just the beginning of Yondr’s broader strategy to expand its global footprint and play a pivotal role in shaping the future of digital infrastructure.
FAQ Section
1. What is the capacity of the Johor data center once fully completed?
2. When is Phase One of the Johor campus expected to be operational?
Phase One of the Johor data center campus is anticipated to be ready for service later in 2025.
3. Which companies provided financing for Yondr’s Johor project?
The financing for Yondr’s Johor project was secured from a consortium of lenders, including DBS Bank, Deutsche Bank, HSBC, Global Infrastructure Partners, ING, and the International Finance Corporation (IFC).
4. What is Yondr’s global presence?
Yondr has a significant global presence, with projects in Virginia, the UK, Malaysia, Indonesia, Japan, Germany, India, and the Netherlands, totaling over 878MW of contracted data center capacity.
5. What are the future prospects for Yondr’s Johor data center campus?
As the demand for AI, cloud, and digital services continues to grow, the Johor campus is expected to play a pivotal role in Southeast Asia’s digital infrastructure development, positioning Yondr for long-term success in the region.
