[KUALA LUMPUR] Chinese data centre firm Zdata Technologies is seeking private debt of around US$500 million to fund a project in Malaysia, according to people familiar with the matter, adding to the wave of similar deals in Asia as the demand for digital infrastructure surges.
The company, whose clients include Alibaba Group Holdings, TikTok-owner ByteDance and Tencent Holdings, plans to use the proceeds for a data centre buildout in the southern Malaysian state of Johor, the people said, who asked not to be identified discussing private matters. The deal’s tenor could be around two to three years, they added.
Discussions are ongoing and the loan’s details could still change, the people said. Zdata did not immediately respond to calls and emails for comment.
Zdata’s efforts to establish a presence in Malaysia is the latest sign of the booming data centre financing trend in Asia, as companies across the region race to meet surging demand for artificial intelligence-related services. The sector is set to grow by about 32 per cent a year in Asia through 2028, according to real estate services firm Cushman and Wakefield, outpacing the US’ expected growth of 18 per cent.
Zdata, through its subsidiary Computility Technology (Malaysia), purchased 38 acres of land last year to develop a data centre, according to a statement from Malaysian developer Tropicana Corporation.
The firm is also considering an initial public offering in Hong Kong, Bloomberg News reported in November, potentially valuing it at more than US$5 billion.
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Established in 2014, Zdata provides cloud-network convergence and IT infrastructure services, according to its website. It is planning to build over 30 green data centres in areas such as Beijing, Tianjin and Shaoguan, with a total capacity of three gigawatts. BLOOMBERG
