Singapore’s STT GDC eyes $3.1 billion loan, adds to AI debt binge

HONG KONG – Singapore data centre firm STT GDC is negotiating a $3.1 billion syndicated loan, officials familiar with the matter reveal. This loan comes as the artificial intelligence boom fuels demand for debt among firms constructing the necessary infrastructure. The lenders involved in the proposed borrowing include Standard Chartered, UOB, OCBC Bank, and DBS Bank, acting as global coordinators, lead arrangers, and book runners, according to the sources.

The three-year loan, paying an interest margin of 165 basis points over the benchmark Singapore Overnight Rate Average, includes an option to extend for up to two additional years. The borrowed funds will be utilized to finance STT GDC's assets, the sources add. The group that acquired STT GDC in September, led by KKR and Singtel, is behind the transaction, following an initial $6.6 billion purchase price.

Earlier, DBS, OCBC, and UOB participated in a $5 billion sustainability-linked loan for the acquisition. While representatives from STT GDC, StanChart, DBS, KKR, and UOB did not respond to requests for comment, Singtel and OCBC did not reply to inquiries. The STT GDC deal is part of a surge in debt financing spurred by the AI boom, which has raised investor concerns about lofty valuations of AI-related companies.

Globally, AI-linked debt financing has totaled over $650 billion (S$831.35 billion) since 2025 began, as per Bloomberg data. Moody's anticipates a minimum of $3 trillion in data centre-related investments over the next five years. Established in 2014, STT GDC is Asia's largest data centre operator, with facilities in 12 countries, including India, South Korea, Japan, Malaysia, Britain, Germany, and Italy, according to its website.