Malaysian data center firm Pi Data Center has secured funding for a new facility in Cyberjaya.
Bank Pembangunan Malaysia Berhad has announced plans to support the launch of Pi Data Center Sdn Bhd (PiDC) in the city with a RM 253.5m ($53m) investment.
The loan is being provisioned by Tawarruq Asset Financing Facilities, an Islamic term financing facility.
Not to be confused with Indian provider Pi Datacenters, Pi Data Center (PiDC) is set to develop a Tier III-quality facility in the state of Selangor. Specifications of the Cyberjaya facility were not shared.
Roni Abdulwabab, GCEO of Bank Pembangunan, said: “This partnership underscores Bank Pembangunan's commitment to delivering impact capital for national development and we believe that investments in digital infrastructure are crucial for driving economic growth and enhancing the country’s competitiveness on the global stage.”
The CEO of PiDC, Ong Chin Seong, added: "We are honored to partner with Bank Pembangunan in realizing our vision of a world-class data center that not only meets the highest standards of efficiency and performance but also serves as a catalyst for environmental sustainability and talent development.”
Tawarruq Asset Financing Facilities is a facility offered by Bank Pembangunan for the finance and acquisition of land, buildings, vessels, and machinery.
In Islamic financing, Tawarruq - known as commodity Murabaha- involves the bank purchasing a commodity on behalf of a customer and putting a markup in the sale of the commodity to the customer, rather than interest against a loan.
Tawarruq abides by Sharia law which prohibits Islamic banks from charging interest on loans, referred to as ‘riba’.
Incorporated in 1973, Bank Pembangunan is owned by the Minister of Finance. PiDC is a subsidiary of the larger group, PiDC Holdings, based in Malaysia.
A number of operators are developing data centers in Cyberjaya. Earlier this year, APAC operator Bridge Data Centers announced plans to open its third 87MW data center in Cyberjaya. In October last year, Infinaxis broke ground on its data center in Cyberjaya.
