Singapores Data Centre Startup AirTrunk Raises $332m Debt Financing

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AirTrunk founder and CEO Robin Khuda

Singapore-based hyperscale data provider AirTrunk has raised S$450 million ($332.4 million) in debt financing to fund its expansion across Asia, including the launch of its hyperscale data centre in the city-state, it said in an announcement on Wednesday.

The debt financing was undertaken with three global financial institutions, Deutsche Bank, Goldman Sachs and Natixis, with additional equity capital from its founder and CEO Robin Khuda, and shareholders, Goldman Sachs and TPG Sixth Street Partners (TSSP).

AirTrunk was advised by Grant Samuel, Norton Rose Fulbright and Rajah & Tann.

The startup last raised about $621 million in August 2018 from a similar set of investors to fund its planned major expansion in Australia and other key Asian markets.

Founded in 2014, AirTrunk develops and operates large-scale wholesale data centres that provide a platform for cloud, content, and large enterprise customers across the Asia-Pacific region. It opened its two Australian data centres in 2017.

“This additional S$450 million financing provides us with a strong balance sheet to pursue further growth and become the preeminent hyperscale data centre operator in the region,” said Khuda.

The new hyperscale data centre will be the largest neutral data centre in Singapore, with more than 60 MW of IT load, and is specifically designed for hyperscale cloud, content and enterprise customers.

The site, located in Loyang, is strategically positioned near the Changi North Cable Landing Station, a key sub-sea internet landing station for international interconnection. The carrier-neutral facility will be serviced by multiple fibre paths and a dedicated high-voltage substation will provide highly reliable and cost-effective power solutions for customers, said AirTrunk.

The data centre is set to be operational in mid-2020, said AirTrunk chief commercial officer and executive director Michael Juniper.

“The rapid growth of cloud and evolving needs of enterprises are driving demand for hyperscale capacity in the region. Singapore is a strategic data centre hub due to its economic and political stability and rich connectivity to Asia, the USA, and Europe,” he said.

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