Singapore’s STTGDC Eyes $2.4 Billion Loan, Adds to AI Debt Binge

Singapore-based data center operator STT GDC Pte. is in talks with banks for a S$3.1 billion ($2.4 billion) syndicated loan, according to people familiar with the matter, as the AI boom continues to fuel demand for debt among companies building the infrastructure.

Banks working on the planned borrowing as global coordinators, mandated lead arrangers and bookrunners include Standard Chartered Plc, United Overseas Bank Ltd., Oversea-Chinese Banking Corp. and DBS Bank Ltd., said the people, asking not to be identified discussing private details.

The three-year borrowing, which pays an interest margin of 165 basis points over the benchmark Singapore Overnight Rate Average, comes with an extension option of up to two years, the people said. Proceeds will be used as financing for STTGDC’s assets, they said.

Representatives from STTGDC, StanChart, DBS, KKR and UOB declined to comment, while Singtel and OCBC didn’t respond to a request for comment.

A group led by KKR & Co. and Singapore Telecommunications Ltd. completed its acquisition of STTGDC in September, after earlier agreeing to buy the data center company for S$6.6 billion. DBS, OCBC and UOB earlier participated in a S$5 billion sustainability-linked loan for the purchase.

STTGDC’s deal adds to a wave of debt financing driven by the AI boom that’s also raised worries among investors with the binge pushing up bond yields, increasing scrutiny of what many see as lofty valuations of AI-linked companies.

Globally, the AI borrowing binge has flooded markets with more than $650 billion of debt since the start of 2025, according to data compiled by Bloomberg. Moody’s Ratings expects at least $3 trillion of data center-related investments over the next five years.

Established in 2014, STTGDC is one of Asia’s largest data center operators with facilities across 12 countries including India, South Korea, Japan and Malaysia as well as the UK, Germany and Italy, according to its website.

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