ST Telemedia Global Data Centres (STT GDC) is discussing a S$3.1 billion ($2.4 billion) syndicated loan with banks, according to Bloomberg, which cited people familiar with the matter.
Standard Chartered, United Overseas Bank, Oversea-Chinese Banking Corp. and DBS are working on the proposed financing as global coordinators, mandated lead arrangers and bookrunners. The three-year loan would carry an interest margin of 165 basis points over the Singapore Overnight Rate Average, or SORA, and could be extended by up to two years.
The borrowing is intended to finance STT GDC’s assets. The discussions follow the completion in September of the company’s acquisition by a consortium led by KKR and Singapore Telecommunications, which agreed to purchase the data centre operator for S$6.6 billion. DBS, OCBC and UOB also participated in S$5 billion of financing for that acquisition, Bloomberg reported.
The proposed loan comes as data centre operators face increasing funding needs linked to the expansion of infrastructure for artificial intelligence. Bloomberg-compiled figures indicate that the global AI boom has generated more than $650 billion in debt since the start of 2025. Moody’s Ratings expects data centre-related investment to reach at least $3 trillion over the next five years.
Founded in 2014, STT GDC operates data centres in 12 countries, including India, South Korea, Japan, Malaysia, the United Kingdom, Germany and Italy.
Sources: Investing.com News.