Blackstone Inc is finalising a group of banks to underwrite a A$4.3 billion (US$3 billion or RM12.33 billion) loan for the construction of AirTrunk Pty’s new data centre in Australia, according to people familiar with the matter, despite growing worries over the massive debt racked up for artificial intelligence infrastructure projects.
Lenders include Credit Agricole SA, DBS Group Holdings Ltd, Deutsche Bank AG, HSBC Holdings plc, ING Bank NV, Mitsubishi UFJ Financial Group, Morgan Stanley and United Overseas Bank Ltd, said the people who asked not to be identified discussing a private matter.
The group is set to expand as more banks look to join as underwriters, the people said, adding that proceeds from the five-year loan will be used to build the company’s SYD3 hyperscale data centre.
Representatives for Blackstone, AirTrunk, HSBC and Deutsche Bank declined to comment. Morgan Stanley, DBS, MUFG, Credit Agricole, ING Bank and UOB didn’t immediately respond to requests for comment.
The latest fundraising plan by Blackstone-owned AirTrunk comes amid growing concerns over the sheer volume of debt required to finance the rapid expansion of data centres. At least US$334.5 billion (RM1.37 trillion) worth of bonds and loans have been issued so far this year to fund AI infrastructure projects, far exceeding the US$185.5 billion raised for all of 2025, according to data compiled by Bloomberg.
The Australian Financial Review first reported about AirTrunk assembling the debt package for its data centre on Wednesday.
In Asia Pacific, data centres have traditionally relied on bank financing. But lenders are gradually approaching internal exposure limits for the sector after committing billions of dollars to data centre projects, the people said. At the same time, strong demand for capital is pushing up borrowing costs for these operators.
Despite the rising risks, deal activity in the region is brisk. AirTrunk is in the midst of wrapping up a loan of about US$2.3 billion for a project in Johor, Malaysia, while Australian-listed NextDC Ltd has increased the size of a new facility to A$2.3 billion from an initial A$1.8 billion.
Malaysia