APAC data center firm AirTrunk has secured new sustainability-linked financing.

The Blackstone-owned company this week closed an AU$16 billion ($10.37bn) refinancing, backed by a consortium of more than 60 banks and financiers.

Claimed to be the region’s largest-ever sustainability-linked financing, the multi-transaction financing covers key greenfield and operational assets across Australia, Hong Kong, Malaysia, and Singapore.

The latest financing takes the company’s total financing platform to over AU$18bn ($11.67bn), including Japan.

AirTrunk founder & CEO, Robin Khuda, said: “Following AirTrunk’s AU$24+ billion acquisition by Blackstone and CPPIB in 2024, we have expanded our debt financing platform to enable our rapid growth across the region. By linking all AU$18 billion of our financing to sustainability, we demonstrate our long-term commitment to scale responsibly, building essential digital infrastructure to power the digital economy, while delivering lasting positive environmental and social impact.”

The refinancing is comprised of four individual transactions, which are each sustainability-linked, structured as either green loans or SLLs.

Sustainability-focused KPIs linked to financing include energy and water efficiency, renewable energy adoption, and gender pay equity. All margin incentives from the sustainability-linked financing will continue to be directed to AirTrunk’s social impact fund. AirTrunk aims to be carbon net zero by 2030.

In Singapore, a previously S$2.25bn (US$1.75bn) green loan will support the development of AirTrunk SGP2 in Loyang. The company said it is Singapore’s largest loan and green loan for a data center.

In Melbourne, AirTrunk said its latest green loan is the largest in APJ to-date and the first globally to feature margin adjustments linked to a social impact program – a mechanism traditionally used in SLLs.

AirTrunk added that it is also the first publicly known corporation to embed disaster relief into its financing structure through the social impact fund, with margin savings supporting emergency response efforts in local communities.

AirTrunk vice president, treasurer, Luke Stephens added: “This AU$16+ billion equivalent refinancing is a major milestone in AirTrunk’s sustainable finance journey, driving both innovation and transparency. From leading the industry with the first SLL in 2021 to today’s landmark multi-transaction structure, we’ve consistently pushed boundaries to drive responsible growth and create meaningful social value. It’s an honour to collaborate with such a diverse group of financiers and partners to deliver a market-leading solution that aligns capital with purpose and sets a benchmark for others to follow.”

Founded in 2018, AirTrunk was acquired by Blackstone and Canada Pension Plan Investment Board for US$16.1bn last year, the largest-ever deal in the space. AirTrunk has data center campuses in operation and development in Singapore; Hong Kong; Johor, Malaysia; Tokyo (x2) and Osaka, Japan; Sydney (x3), and Melbourne, Australia.

Sustainability-linked financing is becoming an increasingly popular way for data center firms and telcos to raise funds for projects. With SLLs, companies can secure more favorable interest rates on debt if they achieve certain sustainability targets. With green bonds, companies raise money for select projects that meet pre-agreed sustainability criteria.