AI Boom Turns Asian Data Centers Into Magnets for Loan Deals

Demand to expand by about 32% a year, outpacing US' expected growth of 18%

- 

HONG KONG — Artificial intelligence (AI) advances are fueling a funding frenzy for data centers in Asia, spawning a series of record-breaking loans and filling the pipeline with even more potential deals.

In the span of a week, two major Asian data center operators secured their biggest-ever loans, partly earmarked for the expansion of their operations in Malaysia, which is becoming a hub for these facilities.

The deals underscore the industry's appeal in attracting a range of investors — from banks to real estate players — as the AI boom drives demand. They also show how much of a data center hot spot Asia has become, with demand set to expand by about 32 percent a year until 2028, according to data by real estate services firm Cushman and Wakefield, outpacing the US' expected growth of 18 percent. However, the US tariff policy could be a wild card for the industry.