Milbank Advises Finance Parties on US$900M Financing of Yondr’s 98MW Data Center in Malaysia

Milbank LLP represented the finance parties, including DBS Bank, Deutsche Bank, Global Infrastructure Partners (a part of Blackrock), HSBC, International Finance Corporation (IFC), ING and Natixis CIB, on the financing of a 98MW data center in Johor, Malaysia, being developed by Yondr Group. The project is the first phase of a 72.5-acre data center campus that will deliver up to 340 megawatts of critical IT capacity when fully complete, making it one of the largest and most technologically advanced data centers in Asia Pacific.

The hyperscale data-center campus will also be certified by the Excellence in Design for Greater Efficiencies green building program, which is IFC's green building certification system focused on making buildings more resource efficient.

Yondr Group is a global leader, developer, owner and operator of hyperscale data centers and this transaction is their first major debt financing in the Asia-Pacific region.

“We’re delighted to work with all of the finance parties on this groundbreaking project,” said Milbank partner James Orme. “The hyperscale campus will be vital in supporting the rapidly growing demand for data processing capacity in Malaysia and the transaction will be a benchmark for others going forward.”

“Demand for digital infrastructure projects continues to grow exponentially, and this transaction is a testament to the financial markets' desire to invest in data center companies like Yondr,” added Global Project, Energy and Infrastructure Finance Group chair Dan Bartfeld.

The Milbank team was led by partners James Orme, David Zemans and Dan Bartfeld, and included special counsel Rosaline Yusman, of counsel Desiree Woo, and associates Deirdre Swift, Wei Sheng Lee, An Guo, Kris Singh, Denisa Neagoe and Jade du Berry. 

This transaction is another example of Milbank serving as lead counsel in the digital infrastructure space, where it is the most active law firm throughout the digital infrastructure value chain, ranging from data centers (and associated power solutions), chip foundries, GPU procurement and fibre and towers. Milbank’s Digital Infrastructure team has led over US$60 billion of data center and related transactions in the past year.