Singapore’s data centre operator STT GDC eyes US$2.4 billion loan, adds to AI debt binge
Proceeds will be used as financing for STT GDC’s assets
Singapore's leading data centre operator, STT GDC, is in discussions with banks for a S$3.1 billion syndicated loan, as the AI boom continues to drive demand for debt among infrastructure builders. The three-year borrowing, with a 165 basis points interest margin over the Singapore Overnight Rate Average, includes an extension option of up to two years.
The loan, which will be used to finance STT GDC's assets, is being coordinated by Standard Chartered, United Overseas Bank, Oversea-Chinese Banking Corp, and DBS Bank. The deal, led by KKR & Co and Singtel, adds to a recent wave of debt financing in the AI sector, raising concerns about lofty valuations. Globally, AI-linked borrowing has reached over $650 billion since the beginning of 2025.
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