Australian-founded data centre giant AirTrunk is doubling down on the global AI boom, securing a $US1.2bn green loan to fund its Tokyo data centre campus, the largest data centre financing in Japan to date. The deal, backed by a 12-bank syndicate including SMBC and MUFG, takes AirTrunk’s total investment in Japan beyond $US8bn as it scales infrastructure to meet surging demand.
Owned by Blackstone following its $24bn acquisition in 2024, AirTrunk is rapidly expanding across Asia and the Middle East, positioning itself as a key enabler of hyperscalers like Amazon, Microsoft and OpenAI. The Tokyo project alone is expected to deliver over 300MW of capacity, highlighting the sheer energy intensity behind AI and cloud computing. The company is also continuing its Middle East expansion, including a $US3bn Saudi Arabian data centre development, signalling confidence in long-term demand despite rising geopolitical tensions.
Higher rates in Australia are increasing the cost of debt and are likely to slow new debt raisings, particularly for more leveraged transactions. However, Japan’s still relatively low-cost financing environment continues to support large-scale debt raises, even as borrowing costs rise globally. While tighter financial conditions are beginning to weigh on deal activity, high-quality, long-duration assets with strong counterparties continue to attract global capital.
