The loan follows KKR & Co.'s completed acquisition of STTGDC in September through a consortium that included Singapore Telecommunications Ltd, after the group earlier agreed to buy the data centre company for $6.6 billion. DBS, OCBC and UOB had previously participated in a $5 billion sustainability-linked loan tied to that purchase. Representatives from STTGDC, Standard Chartered, DBS, KKR and UOB declined to comment, while Singtel and OCBC did not respond to requests for comment.
The financing underscores the scale of borrowing now flowing into AI-related infrastructure. Globally, the AI borrowing binge has flooded markets with more than $650 billion of debt since the start of 2025, according to data compiled by Bloomberg, while Moody's Ratings expects at least $3 trillion of data centre-related investments over the next five years. The surge has raised concerns among investors that the pace of debt issuance could push up bond yields and heighten scrutiny of what many perceive as lofty valuations among AI-linked companies.
Established in 2014, STTGDC has grown into one of Asia's largest data centre operators, with facilities across 12 countries including India, South Korea, Japan and Malaysia, as well as the UK, Germany and Italy. The company's expanding footprint positions it at the centre of regional demand for computing capacity, even as the broader AI trade shows signs of strain. The proposed loan illustrates how data centre operators are increasingly turning to syndicated bank debt to fund expansion, a trend that is deepening ties between digital infrastructure providers and the financial sector while amplifying the sector's exposure to shifting sentiment around AI valuations.