Asia-Pacific and Middle East hyperscale data centre specialist AirTrunk has secured a A$4.25 billion ( US$2.99 billion ) green loan to fund the continued development of its SYD3 campus in Western Sydney.
The project, the company notes, will add secure, resilient infrastructure for cloud, artificial intelligence ( AI ) and other digital services used by Australian businesses, governments and communities, and it is expected to support more than 10,000 jobs across construction, trades, engineering, logistics and safety.
The facility is structured as a green loan with margin adjustments. Any contributions from the margin savings on the facility will be directed to the company’s social impact programme to support local charities working across Stem ( science, technology, engineering and mathematics ) education, digital equity, biodiversity and conservation, sustainable innovation and disaster relief.
SYD3 is creating project activity and opportunities for contractors and suppliers across Western Sydney and Australia, including in steel and precast manufacturing, freight and logistics, civil works, and electrical and mechanical services.
For SYD3, AirTrunk is leveraging a 25,000 square metre strategic buffer zone in Western Sydney to store, stage and pre-commission critical data centre equipment, supporting just-in-time deliveries to campus. Moreover, the company’s investment in dedicated time-charter vessels further strengthens the supply chain into Port Botany, Port Kembla and beyond.
A consortium of 32 local and international financial institutions backed the green loan, making it one of the largest lending groups assembled for a data centre financing in Australia.
The green loan was underwritten by 14 lead banks: Banco Santander, BNP Paribas, Crédit Agricole Corporate and Investment Bank, DBS Bank, Deutsche Bank, ING Bank, Mizuho Bank, MUFG Bank, National Australia Bank, Royal Bank of Canada, Société Générale, Sumitomo Mitsui Banking Corporation ( SMBC ), Hongkong and Shanghai Banking Corporation ( HSBC ) and United Overseas Bank ( UOB ).
Green loan coordinators were SMBC, HSBC and UOB. Legal advisers for the transaction were Mallesons ( borrowers counsel ) and Gilbert & Tobin ( lenders counsel ).
“SYD3 is a long-term investment in Western Sydney and Australia’s digital capability, backed by the confidence of leading Australian and international banks,” says Tom Mackellar, the company’s vice-president of origination and market expansion. “As the campus develops, it’s building a regional ecosystem through active hiring, sustained project activity and strategic supply chain partnerships – creating opportunities for local workers, contractors and businesses while delivering infrastructure Australians increasingly rely on.
“The green financing also reflects our view that sustainability should be built into how digital infrastructure is funded and delivered. We’re focused on responsible growth that creates lasting value for communities in the regions where we operate.”
