IFC and Global Financial Institutions Back Yondr Group’s Data Center Project in Malaysia

The financing round includes contributions from DBS, Deutsche Bank, Global Infrastructure Partners (a part of BlackRock), HSBC, ING, and Natixis CIB.

The International Finance Corporation (IFC), the leading global development institution focused on the private sector in emerging markets and a member of the World Bank Group, along with a consortium of six international financial institutions, has committed over $900 million in financing to Yondr Group's hyperscale data center project in Johor Bahru, Malaysia. This financing will help Yondr Group deliver the first phase of a 98-megawatt data center campus that is set to become one of Asia Pacific’s largest and most technologically advanced data centers.

The financing round includes contributions from DBS, Deutsche Bank, Global Infrastructure Partners (a part of BlackRock), HSBC, ING, and Natixis CIB. This collaboration marks a significant step in the development of Yondr’s 72.5-acre data center campus, which, upon full completion, will offer 300 megawatts of critical IT capacity to meet rapidly growing regional demand for data processing services.

In May 2024, IFC announced an initial $150 million financing package, which included a $50 million bridge loan to help advance the project and attract the participation of the six international financial institutions in this financing round. The second tranche of financing, valued at $100 million, was provided by IFC, alongside the other consortium members.

Boosting Digital Infrastructure in Asia-Pacific

Chester Reid, CFO of Yondr, expressed his enthusiasm for the project’s potential: “Our Johor campus is a landmark development for Yondr and will become an integral part of Asia’s infrastructure as demand for data capacity continues to grow, especially with the rise of artificial intelligence and digital services. The success in securing substantial financing underscores the trust placed in the Yondr brand by leading financial institutions, following the successful delivery of several major projects in Europe and North America this year.”

Commitment to Sustainability and Efficiency

The campus will be certified by IFC’s Excellence in Design for Greater Efficiencies (EDGE) green building program. EDGE is a green building certification system designed to make buildings more resource-efficient, and this certification will highlight Yondr’s commitment to sustainability in the rapidly expanding data center industry.

Judith Green, the World Bank Group’s Country Manager for Malaysia, emphasized the broader impact of the project: “We are thrilled to commit the second tranche of our financing for Yondr’s data center campus in Malaysia. This project will not only facilitate the digital transformation of the Asia-Pacific region but also serves as a strong example of how IFC’s tailored financing solutions can help de-risk projects and attract private-sector investment in emerging markets.”

A Major Milestone for Yondr and Malaysia’s Digital Landscape

The project represents a significant milestone for both Yondr and the Malaysian economy. It is IFC’s third investment in the country since establishing a presence in 2023. As one of the largest infrastructure projects in the region, the data center campus is expected to create substantial economic value by supporting the growth of AI, cloud computing, and other digital services, contributing to the country’s digital transformation goals.

IFC played a key role as the mandated lead arranger for the financing package, with DBS, Deutsche Bank, HSBC, ING, and Natixis CIB acting as mandated lead arrangers, underwriters, and bookrunners. The data center campus is expected to set a new standard in the region for digital infrastructure and sustainability.

A Growing Investment Portfolio in Malaysia

This financing deal reflects IFC’s growing investment portfolio in Malaysia, marking a continuation of the institution's efforts to accelerate digital and infrastructure development across the country. IFC’s commitment to this project aligns with its broader strategy to promote sustainable, private-sector-driven growth in emerging markets.

For further details on IFC's activities and its investments in the region, visit the official IFC website.