JOHOR BAHRU: ST Telemedia Global Data Centres (STT GDC) has secured up to US$1.37 billion in funding for STT Johor, its flagship 166MW data centre campus in Johor, Malaysia, according to a report by Data Center Dynamics. The financing takes the form of a green loan and will fund the build-out of the campus' first phase, which is designed to deliver 16MW of IT load and is expected to be completed in 2027.
The campus was first announced in November 2023, after STT GDC acquired land from Malaysian property company Crescendo Corp. It occupies 22 acres inside the Nusa Cemerlang Industrial Park in Iskandar Puteri, in southern Johor. The company broke ground on the first phase of STT Johor in February 2025, and the state has drawn a wave of hyperscale and colocation investment in the years since.
STT GDC is headquartered in Singapore and was formerly the data centre arm of ST Telemedia, a Singapore telecommunications investor. The business was acquired in February 2026 by investment firm KKR and Singapore Telecommunications, known as Singtel. Its footprint spans Singapore, India, the Philippines, Thailand, Malaysia, Indonesia, Vietnam, Japan and South Korea, while its European operations run through Virtus Data Centres in the United Kingdom, Italy and Germany.
Green financing for a phased build
A green loan is a debt facility whose proceeds are reserved for projects with environmental benefits, usually verified against recognised green loan principles. Data centre developers use such facilities to finance efficient cooling, renewable power procurement and water-saving systems. For a campus of this size, the structure allows long-dated infrastructure spending to be matched with long-dated debt.
Phase one of STT Johor is designed to deliver 16MW of IT load, a fraction of the 166MW the completed campus is planned to hold. The remaining capacity is expected to follow in later stages, a pattern that has become standard for large campuses in the state. Only the first phase is covered by the financing that has now been secured.
- Up to US$1.37 billion in funding
- Structured as a green loan
- 166MW of total campus capacity
- 16MW of IT load in phase one
- Phase one completion expected in 2027
Building at Nusa Cemerlang
The site sits inside the Nusa Cemerlang Industrial Park in Iskandar Puteri, in southern Johor. The 22-acre parcel was acquired from Crescendo Corp, a Malaysian property company. STT GDC describes STT Johor as its flagship project in the country. Iskandar Puteri lies close to the Singapore border, a location that has drawn operators serving both markets. The industrial park sits within the wider Iskandar Puteri development area, which has attracted both data centre and manufacturing investment in recent years.
The financing follows a change of ownership at the top of the group. STT GDC was acquired in February 2026 by investment firm KKR and Singtel, after years as the data centre arm of ST Telemedia. The transaction placed the regional platform under owners with interests in both telecommunications and private infrastructure investment. The deal also put the company's Malaysian expansion under new ownership at a time when demand for capacity in the state was rising.
APAC operator ST Telemedia Global Data Centres (STT GDC) has secured up to $1.37 billion in funding for STT Johor, the company's flagship 166MW data center in Johor, Malaysia.
The campus is designed for 166MW, but only 16MW of that capacity arrives in the first phase. The financing therefore covers a small part of the full project, with later stages expected to follow. Operators in Johor are competing for land, power and grid connections as well as for capital. The terms agreed for the first phase will also set a reference for how the remaining stages are financed and scheduled.
The funds, which come in the form of a green loan, will be used to fund the build-out of the campus' first phase.
What it means for Malaysia
For Malaysia, the financing signals that international capital continues to flow into Johor's data centre corridor. A green loan tied to a campus build-out also shows that sustainability criteria are being written into how such projects are funded, not only into how they are marketed to customers and regulators. It also places the state in the same category as other regional markets competing for the same lenders and the same sustainability standards.
- International capital remains available for Johor campuses
- Sustainability criteria now shape financing terms
- Capacity is added in phases rather than at once
- Land and power remain the main constraints
What to watch next
Phase one is expected to be completed in 2027, and later stages will determine whether the full 166MW is delivered as planned. Power supply, water use and grid connection timelines will matter as much as construction schedules for campuses of this size in Johor. The first phase alone is designed to deliver 16MW, so the remaining capacity on the campus depends on decisions that have not yet been taken.
For cloud buyers in Malaysia, the practical effect is more capacity coming online in the south, closer to the Singapore border, built to sustainability standards. Whether that translates into better pricing or more resilient service will depend on how quickly the capacity is delivered and how it is powered. It also gives buyers a second large campus to compare providers against.
For operators weighing similar projects in Johor, the deal shows that financing can still be arranged at scale when a project combines a credible site, a phased build and an environmental angle. The next test is whether power and water infrastructure keeps pace with the capacity being announced. The structure also shows that lenders will fund a first phase before the full campus is committed, which spreads the risk for the operator.
Source: Data Center Dynamics
