International Finance Corporation (IFC), a member of the World Bank Group, has on Wednesday announced a senior loan of $150 million to help finance construction of the first phase of a 300 megawatt IT load, 72.5-acre data center campus by the global data center operator Yondr Group.

Once complete, the project, located at the Sedenak Tech Park in Johor Bahru, will become the largest data-center campus based in an emerging market, in terms of combined metrics of land size and committed power capacity, IFC said in a statement.

“Malaysia’s ambitions to become a key regional data center hub gets a fresh boost following a sizeable investment from IFC in what will be one of the largest data center campuses in the Asia-Pacific region,” it said.

According to IFC, the project will also be certified by the Excellence in Design for Greater Efficiencies (EDGE) green building program, IFC’s green building certification system focused on making buildings more resource efficient.

“We are very pleased to conclude this round of financing with IFC,

“Not only do our values and interests align but we are both organizations well versed in offering industry-leading expertise to develop digital infrastructure projects,” said Chester Reid, Yondr’s Chief Financial Officer.

According to him, this financing demonstrates the potential IFC sees not only in Yondr’s best in class capabilities but also in Malaysia’s digital economy, which is developing at pace.

“We look forward to expanding our growing relationship with IFC and partnering in Malaysia and other developing nations in the future,” he added.

Katia Daude Gonçalves, Country Manager for Singapore, Malaysia, and Brunei at IFC, said they are excited to partner with Yondr for this significant data center investment in Malaysia.

“This project will help increase and improve digital connectivity for individuals and businesses in a sustainable manner, while increasing the competitiveness of the burgeoning market for data-hosting services in the country and the region,” she added.

The project is IFC’s third investment in Malaysia since establishing a presence in the country last year.

In December 2023, IFC also provided China’s Shandong Intco Recycling Resources Co. Ltd. with an innovative blue loan of $70 million to build a multi-material plastic recycling plant in Malaysia and support the working capital needs of its operations.

Yondr Group is a global developer, owner operator of hyperscale data centers.

The company specializes in delivering and operating dedicated infrastructure that is engineered for scale.

IFC is the largest global development institution focused on the private sector in emerging markets.

The organization works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.

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