Yondr secures US$150m IFC loan for Malaysia data campus

Global developer, owner, and operator of hyperscale data centres Yondr Group has secured a loan facility of up to USD $150 million from the International Finance Corporation (IFC). The IFC is the largest global development institution focused on the private sector in emerging markets and is a member of the World Bank Group. This substantial financing is earmarked for the construction of the first phase of Yondr's hyperscale campus in Johor, Malaysia.

Located in Sedenak Tech Park, Yondr's Johor campus is set to become the largest hyperscale data centre campus in Southeast Asia, boasting an IT load power capacity in excess of 300MW on 72.5 acres of land. The significant investment from IFC underscores confidence in Yondr's ability to deliver a project of this scale as well as in Malaysia's burgeoning digital economy.

IFC's backing highlights the increasing demand for robust digital infrastructure in the region, driven by rapid adoption of artificial intelligence and other emerging technologies by global economies. Chester Reid, Chief Financial Officer at Yondr, expressed his satisfaction with the financing agreement, emphasising the alignment of values and expertise between the two organisations. Reid noted that the financing showcases IFC's confidence in Yondr's capabilities and in the fast-paced development of Malaysia's digital economy. He also indicated Yondr's enthusiasm for future collaborations with IFC in Malaysia and other developing nations.

Paul Dillon, Chief Development Officer at Yondr, reiterated the company's commitment to expanding its presence in Asia. He revealed that the announcement is a significant step in Yondr’s efforts to enhance digital infrastructure in Malaysia, aiding the country’s ambition to transform into a digital-first economy. Dillon stressed the positive contributions Yondr aims to make towards this goal.

Katia Daude Gonalves, Country Manager for Singapore, Malaysia, and Brunei at IFC, expressed excitement over the partnership with Yondr. She highlighted the importance of the project in improving digital connectivity for both individuals and businesses in a sustainable manner. Gonalves also pointed out how the data centre will elevate the competitiveness of Malaysia’s growing data-hosting services market.

The Johor campus is strategically placed near Singapore, offering essential interconnectivity routes and scalable digital infrastructure. The first phase, set to benefit from the IFC funding, represents a major milestone in the development of the versatile site. This follows the recent announcement from March 2024 that Yondr had energised its cutting-edge 275kV high voltage substation at the campus.

The establishment of this hyperscale data centre is anticipated to bolster regional businesses by providing access to the latest generation of AI-cloud workloads. This, in turn, will drive productivity growth and improve the availability of digital services to individuals in the region.

This substantial investment from IFC is reflective of Malaysia’s growing prominence in the global digital economy. With the development of sophisticated infrastructure, Malaysia is poised to significantly enhance its position as a key player in the Southeast Asian digital landscape.