AI boom turns Asian data centers into magnets for loan deals

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AI boom turns Asian data centers into magnets for loan deals

The rapid growth of artificial intelligence is transforming Asian data centers into prime investment opportunities, attracting significant loans for expansion. In just one week, two major operators secured record loans to enhance their operations in Malaysia, which is emerging as a key hub for data centers. This surge in funding highlights the increasing demand for data center capacity driven by AI advancements.

The data center market in Asia is projected to grow by 32% annually through 2028, surpassing the US's expected growth. Investors, including banks and private credit funds, are diversifying their portfolios to capitalize on this trend, as seen with Bain Capital's Bridge Data Centres and DayOne securing substantial financing. However, geopolitical tensions and potential US tariffs pose risks that could impact future investments in the sector.

• AI advancements are driving record-breaking loans for Asian data centers.

• Demand for data center capacity in Asia is projected to grow by 32% annually.

Key AI Terms Mentioned in this Article

Artificial Intelligence

Artificial intelligence refers to the simulation of human intelligence in machines, driving demand for data centers.

Data Center

Data centers are facilities used to house computer systems and associated components, crucial for AI operations.

Private Credit

Private credit involves non-bank lending to companies, expanding financing options for data center projects.

Companies Mentioned in this Article

Bain Capital

8 billion loan.

Yotta Data Services

Yotta Data Services is seeking to raise $500 million for its data center parks, reflecting the growing investment interest.

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