Sime Darby Property Bhd is in discussions with several banks to secure a loan of up to RM3 billion (US$714 million) to finance the construction of a state-of-the-art data centre that will be leased to Google, sources familiar with the matter revealed.
The proposed loan is expected to have a five-year tenure with an option to extend for up to two additional years. Negotiations are still ongoing, and terms may be subject to change. Sime Darby Property has yet to issue an official statement on the matter.
Part of one of Malaysia’s largest multinational groups, Sime Darby Property is accelerating its push into the data centre sector to meet the surging demand driven by artificial intelligence (AI) adoption. The global AI boom has spurred a wave of record-breaking financing deals for data centre operators across Asia. Earlier this year, Bain Capital-owned Bridge Data Centres secured a US$2.8 billion loan for its Malaysian operations, underscoring the country’s rising prominence as a regional data hub.
Google announced in 2024 that it would build its new Malaysian data centre at Sime Darby’s Elmina Business Park, located near Kuala Lumpur, as part of a US$2 billion investment to strengthen its cloud and AI infrastructure in Southeast Asia. The facility is expected to meet global standards in energy efficiency and security, positioning Malaysia as a key player in the region’s fast-growing digital economy.
