Article
DayOne Secures RM15bil More Financing for Johor Data Centre Expansion
Singapore data centre developer DayOne has secured an additional RM15 billion, about US$3.7 billion, in financing to expand hyperscale data centre capacity in Johor, according to the New Straits Times, citing Reuters, and statements from participating banks.
How the financing is structured
Based on announcements from lenders including DBS and UOB, the package includes:
- A US$2.4 billion offshore term loan
- A RM5.5 billion Murabahah facility, a type of Islamic financing
The financing was arranged by a group of seven banks: CIMB, Credit Agricole CIB, DBS, Maybank, OCBC, Standard Chartered and UOB. Combined with RM15 billion in financing secured in 2025, DayOne's Johor financing platform now totals RM30 billion, according to the bank statements.
Why Johor
Johor has become one of the busiest data centre markets in Southeast Asia. Its proximity to Singapore, availability of land and supportive policies have attracted operators serving cloud and AI customers. The Digital Ministry recently said 16 of the 27 data centre projects approved through its task force are in Johor, as we reported in our data centre roundup.
The Johor-Singapore Special Economic Zone has also added to investor interest, with a master plan expected to be launched by the end of the year.
Key takeaway: when seven major banks commit this much financing, it signals confidence that demand for data centre capacity in Johor will continue.
Banks and Islamic finance
The inclusion of a ringgit Murabahah facility is notable. Malaysia is a major centre for Islamic finance, and large infrastructure projects increasingly use Islamic financing alongside conventional loans. Local banks such as Maybank and CIMB participating also means a portion of the financing comes from Malaysian institutions.
Hyperscale demand behind the deal
Hyperscale data centres serve the largest cloud and technology companies, which rent huge blocks of capacity on long-term contracts. Lenders are generally willing to finance projects at this scale when there is visible demand from such customers. While the specific customers behind DayOne's Johor expansion were not detailed in the reports, the size of the financing suggests strong expected demand. The global push to build AI computing infrastructure is one of the main reasons operators are racing to secure land, power and funding across Southeast Asia, with Johor among the top destinations.
What it means for Malaysians
The financing supports continued data centre construction in Johor, which can affect residents and businesses in several ways:
- Construction activity means demand for contractors, materials, transport and workers in the state.
- Technical jobs in electrical, mechanical and network roles are likely to grow.
- Property and services around data centre clusters may see more demand, from housing for workers to food and logistics.
- Power and water planning remains important, since large data centre campuses need significant resources.
For Johor-based SMEs, it may be worth exploring supplier registration and subcontracting opportunities with major contractors serving these projects.
What to watch
Watch for updates on DayOne's new capacity coming online, customer announcements and how Johor's utilities keep pace. With other operators also announcing large AI and data centre plans, the next few years will test how quickly infrastructure can be delivered.