AirTrunk raises RM1.4b to build S’pore data centre

By BLOOMBERG

SINGAPORE • Data centre start-up AirTrunk has raised S$450 million (RM1.36 billion) in debt and equity to help build its first Singapore facility as part of a multibillion dollar plan to become a regional technology powerhouse.

The Goldman Sachs Group Inc and TPG Sixth Street Partners-backed company has already spent more than A$1 billion (RM2.94 billion) on two data centres in Australia and will open its Singapore facility in two phases, according to founder Robin Khuda.

The first stage is expected to be ready by mid-2020 and will allow half of its planned 60MW capacity to be sold to customers.

The rest will be built when there’s enough demand, with the total project taking up 1.5ha of land in Loyang, in Singapore’s east, and costing “in excess” of S$500 million, he said.

AirTrunk is taking advantage of the rise in cloud computing as more businesses move their information technology away from self-run data centres to servers run by the likes of Amazon Web Services and Alibaba Group Holding Ltd.

Companies like AirTrunk, Digital Realty Trust Inc and Equinix Inc specialise in building cooled and powered spaces that are leased to cloud vendors and other large enterprises.

AirTrunk’s new financing includes debt and a “sizeable” amount of equity raised from existing shareholders on a pro-rata basis, Khuda said, without elaborating on the specific split. — Bloomberg