Australia-based hyperscale data centre operator AirTrunk has closed a landmark S$2.25 billion ( US$1.75 billion ) green loan – Singapore’s largest-ever loan and green loan for a data centre – which, the company says, will strengthen Singapore’s sustainability finance credentials.

The financing will support the development of AirTrunk SGP2, a next-generation, 70 megawatt ( MW ) digital facility designed with climate resilience at its core.

Located in Loyang, Singapore, the data centre will provide 70MW-plus of essential cloud and artificial intelligence computing capacity for its partners as well as for Singapore and the Southeast Asian region.

The green data centre has been designed to achieve a BCA GreenMark Platinum rating and an industry-leading design power usage effectiveness of 1.20, which is among the lowest levels for a data centre in Singapore. To significantly reduce embodied carbon, the campus also features green concrete and green steel throughout.

Aligned with the Singapore-Asia Taxonomy for Sustainable Finance and AirTrunk’s own green financing framework, the transaction marks a major milestone for green finance in Asia and underscores Singapore’s emergence as the region’s sustainability financing epicentre. The loan also reflects the growing integration of environmental standards into infrastructure capital markets.

Crédit Agricole CIB, DBS Bank and ING Bank served as global coordinators and sustainability structuring agents, leading a consortium of 23 financial institutions. The financing also features an innovative design that allows it to convert into a sustainability-linked loan, unlocking further environmental, social and governance ( ESG )-linked investment tools.

In a departure from standard corporate financing, AirTrunk will channel all margin incentives from the loan into its Singapore social impact fund, demonstrating a link between digital growth and community benefit.

“This financing structure reflects the strength of Singapore’s financial ecosystem,” says Robin Khuda, AirTrunk’s CEO. “It’s a testament to how capital, climate and community impact can converge in the digital age.”

Amit Sinha, DBS Bank’s group head of TMT, western MNCs and digital economy, adds: “The data centre sector is fast emerging as a key growth industry for Asia. This landmark green loan represents the largest financing for a new data centre facility in Singapore to date, underscoring the scale and significance of the project. It comes at a pivotal time as demand for computing power continues to surge across the region.”