Sime Darby seeks loan to build Malaysian data centre for Google

[KUALA LUMPUR] Malaysian developer Sime Darby Property is in talks with banks for a loan of as much as RM3 billion (S$912 million) to fund the building of a data centre that will be leased to Google, according to sources familiar with the matter.

The proposed loan will have a tenor of five years and carry an extension option of as long as two years, the sources said. Discussions are ongoing and details could change, they added.

Sime Darby did not respond to a request for comment.

Sime Darby Property, part of one of Malaysia’s largest multinationals, is ramping up its presence in data centres to serve the boom in artificial intelligence (AI). The AI frenzy has fuelled demand for funding the centres in Asia, resulting in a series of record-breaking loans for operators.

Bain Capital-owned Bridge Data Centres obtained a US$2.8 billion facility earlier this year for operations in Malaysia.

Google announced in 2024 plans to build the data centre at Sime Darby’s Elmina Business Park near the Malaysian capital as part of a US$2 billion investment. BLOOMBERG