STTGDC backs Tokyo data center growth with $588M green loan

source: news (news:lightreading)published 2026-10-29 11:04ingested 2026-10-30 02:55

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Singapore-based STTGDC is using a $588M green loan to finance the fit-out and operations of its first two facilities in Tokyo.

Gigi Onag,Senior Editor, APAC,Light Reading3 Min Read

STTGDC, a Singapore-based data center operator which recently underwent a brand refresh, has secured a green loan facility worth 93 billion Japanese yen (US$588.46 million), which will be used to finance the fit-out and subsequent operations of its first two facilities in its data center campus in the Greater Tokyo area.

Standard Chartered acted as lead coordinator for the financing, alongside Mizuho Bank, OCBC, Société Générale and UOB. Standard Chartered and Société Générale also served as green loan coordinators.

It is arranged in compliance with the Green Loan Principles, connecting the loan to established environmental eligibility standards. These include the data centers attaining an agreed green building certification and achieving a design power usage effectiveness (PUE) ratio of 1.3 or below.

"The green-loan structure aligns our financing strategy with the environmental performance of the assets we develop, reinforcing how sustainability is integrated into our capital allocation and investment decisions," said Nelson Lim, group chief financial officer at STTGDC.

STTGDC TYO1, the company's first operational data center in Japan, has already achieved LEED Gold certification. It is designed to achieve an annualized PUE of less than 1.25. Its closed-loop cooling system is intended to minimize operational water use, with no ongoing water consumption during normal operations.

The facility has obtained ISO 22301, ISO 27001 and ISO/IEC 20000 certifications, and adheres to the guidelines of the Japan Data Centre Council. Since starting operations, it has maintained carbon-neutral operations for Scope 1 and 2 emissions while pursuing the procurement of renewable energy and improvements in energy efficiency.

The STTGDC TYO2 is being developed to support high-density AI and accelerated computing workloads, with provisions for the future deployment of liquid cooling. The project is also targeting TIA-942-C Design Certification and LEED Gold.

Long-term commitment to Japan

STTGDC's Tokyo campus, located within the Goodman Business Park in Inzai City, has been designed to provide a combined IT capacity of 70.8MW in order to support the expanding cloud, AI and other mission-critical digital workloads of hyperscalers, cloud service providers and enterprise customers.

Kiyoshi Maeda, the company's CEO-Japan, pointed out that customers need infrastructure that can grow with their ambitions while delivering the resilience and efficiency required for mission-critical operations.

"The Tokyo campus is central to our long-term commitment to Japan and strengthens our ability to support customers as their cloud, AI and digital infrastructure requirements grow," said Maeda. "Through STTGDC TYO1 and STTGDC TYO2, we are building that capacity in one of Japan's established data center markets and creating a strong platform for our continued growth in the country."

The data center operator, which was previously known as ST Telemedia Global Data Centres (STT GDC), underwent a brand refresh as STTGDC in early September following the completion of the acquisition of the company by a consortium led by KKR and Singtel. The deal was valued at 6.6 billion Singapore dollars ($5.15 billion), with KKR holding the majority stake at 75%.

According to STTGDC, it entered this new phase of its corporate journey with strong operating momentum and a substantial development pipeline.

Since the end of 2025, the company's operational capacity has grown by 25%, reaching 780MW. Additionally, contracted capacity has grown by 50%, while annualized earnings before interest, taxes, depreciation and amortization (EBITDA) have increased by 30%. This reflects the continued demand across its markets.

The data center operator reiterated that responsible growth is an integral part of its business and operations.

STTGDC surpassed its 2028 carbon intensity reduction target three years ahead of schedule by sourcing 83.2% of its electricity consumption across its operations from renewable energy.