STT GDC secures US$1.37 billion green financing for Johor data centre campus as Temasek-backed firm bets on Iskandar Puteri

JOHOR BAHRU: Singapore-linked data centre operator ST Telemedia Global Data Centres has secured a green financing facility of up to US$1.37 billion (S$1.75 billion) to support the development of its flagship Malaysian data centre campus in Johor, according to The Star, citing Bernama.

The financing package includes a green loan facility for the first phase of the STT Johor campus at Nusa Cemerlang Industrial Park in Iskandar Puteri. United Overseas Bank (Malaysia) Bhd is the sole coordinator and mandated lead arranger, with OCBC Bank (Malaysia), Standard Chartered Bank Malaysia, and CIMB Bank as the other mandated lead arrangers, The Star reported.

The STT Johor campus has a planned development capacity of up to 166 megawatts of IT load, intended to serve customers requiring scalable digital infrastructure for cloud computing, AI, high-performance computing, and other next-generation workloads. As reported by The Star, STT GDC said Johor's connectivity, power infrastructure access, expanding talent pool, and proximity to Singapore had strengthened the state’s appeal for hyperscale and large-scale digital infrastructure investment.

The campus is also expected to support the objectives of the Johor-Singapore Special Economic Zone (JS-SEZ), including greater cross-border economic cooperation and Johor's development as a high-value investment destination.

Green financing and sustainability credentials

The financing is structured as a green loan facility, reflecting STT GDC’s stated commitment to incorporating sustainability into the financing, design, construction, and operation of its data centres.

According to The Star, the company’s latest ESG report shows renewable energy accounted for 83.2% of its electricity consumption in 2025, while carbon intensity was reduced by 70.5% from its 2021 baseline, surpassing its 2028 target three years ahead of schedule. Its average power usage effectiveness stood at 1.44, a 13% improvement from the 2020 baseline, while water usage effectiveness improved by 41.2% over the same period.

STT GDC group CFO Nelson Lim was quoted as describing the financing as a milestone that demonstrated banking confidence in both the project and the long-term digital infrastructure sector outlook. “As demand for cloud, AI and other digital workloads grows, disciplined, long-term capital will be critical to building infrastructure that is resilient, sustainable and able to support our customers’ requirements,” he said.

Local talent and community development

Beyond the physical infrastructure, STT GDC has been building local capability in Johor. In April 2026, the company launched talent and community development initiatives in collaboration with the Johor Talent Development Council, Universiti Teknologi Malaysia, and EPI Group, building on a memorandum of understanding signed with the council in 2025 to develop a pipeline of skilled professionals for Johor's data centre industry and the wider region, The Star reported.

STT GDC Malaysia country head Darryll Sinnappa said that the campus reflected the company's long-term commitment to Malaysia and confidence in Johor’s strategic role. “The campus is being developed to support the next generation of digital infrastructure requirements, including cloud, AI and high-performance computing workloads, while contributing to Malaysia’s digital economy ambitions,” he said.

Why this matters for Singapore

STT GDC was established in 2014 as part of Singapore Technologies Telemedia, a strategic investment company backed by Temasek Holdings — Singapore’s sovereign wealth fund. The US$1.37 billion green financing package for a Johor campus is therefore not just a Malaysian infrastructure story, but also a signal from Singapore-linked capital that the Johor digital infrastructure buildout is being taken seriously.

This kind of opinion is one that could support downstream demand for the power, connectivity, water, and talent infrastructure that Johor is simultaneously working to develop.

Read also: Chinese aerospace and medtech firm Hyatech to build new manufacturing plant in Iskandar Puteri