AirTrunk says its JHB1 project in Johor is fully leased (Image: AirTrunk)
Blackstone’s AirTrunk data centre platform said on Thursday that it will invest MYR12 billion ($3 billion) to build two more data centres in Malaysia, with the announcement marking the latest expansion outside the Australian company’s home market as it builds momentum for a Singapore REIT listing.
The Sydney-based operator said the two projects in Johor state will boost its capacity for high-powered computing operations in Malaysia by two-thirds as it seeks to serve growing demand for artificial intelligence and digital services in Southeast Asia.
“JHB3 and JHB4 (represent) the next phase of our expansion in Malaysia, building on the strong momentum of our existing Johor platform. Malaysia has set a clear ambition to lead in AI, and we’re investing in that vision for the long term, both within Johor and across the country in time,” AirTrunk CEO Robin Khuda said.
The Malaysia milestone follows just over a week after AirTrunk said it is entering India with the purchase of Blackstone’s Lumina CloudInfra data centre platform, with analysts pointing to the initiatives as supporting AirTrunk’s plans for a potential $1.5 billion REIT listing by showing a commitment to the Asia Pacific region.
On the Road to the SGX
“Adding these projects in Malaysia, as well as the Lumina CloudInfra deal, shows the market that AirTrunk is acting on its vision for an APAC-wide platform, and not just aiming for a quick sale. A long-term commitment, growth potential and operating ability are key for REIT platforms,” a Singapore-based analyst told Mingtiandi.
AirTrunk CEO Robin Khuda looks enthused about his Johor projects (Image: AirTrunk)
The expansion in Malaysia will raise AirTrunk’s capacity in the country by 280 megawatts to 700 megawatts, while adding to the more than 3 gigawatts in operating or planned capacity which the company declared in its announcement of the Lumina acquisition.
The Lumina CloudInfra acquisition provides AirTrunk with a pipeline of 600 megawatts, representing a planned portfolio of capacity that is worth up to $5 billion, according to Blackstone, which teamed up with the Canada Pension Plan Investment Board in 2024 to purchase AirTrunk in a $16 billion deal. AirTrunk had about 800 megawatts of capacity at the time of the purchase.
AirTrunk is moving ahead with plans for a Singapore-listed REIT, market sources told Mingtiandi in early April, with the listing predicted to raise $1.5 billion and value the vehicle at about $2.5 billion. The company is working with banks including DBS, Citigroup and Jefferies on the listing, which is expected to take place in the second half of this year.
“The addition of two campuses in Johor Bahru doesn’t come as a surprise considering large land availability and relatively cheaper costs compared to Singapore. With the planned IPO on the horizon the proceeds could be used for development of these assets and in turn the assets could become a future pipeline for the REIT,” the analyst added.
Expanding Existing Campuses
The Malaysian expansion brings AirTrunk’s investment in the country to MYR27 billion, according to the statement on Thursday, with the new projects located close to its JHB1 and JHB2, which are “almost 100 percent contracted and tracking well ahead of investment plans.” Public records show that JHB1 and JHB2 are located on parallel streets in the SiLC industrial estate in Johor’s Iskandar Puteri area – around 30 minutes’ drive from Singapore.
The new projects, “will be purpose-built to support high-density cloud and AI workloads, featuring a flexible, scalable, and resilient design,” AirTrunk said, adding the designs will prioritise energy efficiency and include cooling systems that use fully-recycled water.
AirTrunk announced the two Malaysia development just weeks after the company in March marked its tenth year in Singapore with the opening of a new regional headquarters in the city-state, noting at the time that its Singapore platform now supports 180MW of IT load.
Cash for Growth
The operator has also expanded in Japan, securing a record $1.2 billion green loan in March to refinance and expand its flagship TOK1 campus in Tokyo, in what it termed the largest data centre financing ever completed in Japan.
That deal, which AirTrunk says will support development of additional capacity at a site designed to scale beyond 300MW, came after the company in November last year announced a new Tokyo headquarters.
AirTrunk is also said to be restructuring its finances regionally, including having appointed Deutsche Bank to handle an A$500 million ($360 million) asset-backed bond sale, one of the first in the data sector, according to a Bloomberg report in April. The data centre operator aims to use that funding to refinance existing debt, with the deal expected to be executed in the second half of the year, per the media report.
In its home market AirTrunk in December said it had acquired a site for a second hyperscale campus in Melbourne to meet rising demand for cloud and AI workloads.
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