Hyperscale data center operator AirTrunk has secured a green loan amounting to ¥191.6 billion (approximately $1.24 billion) to refinance and further develop its TOK1 data center in the Tokyo area. This significant financing is noted to be the largest data center financing in Japan’s history.

The funds are allocated for expanding the TOK1 campus, which aims to surpass 300 megawatts (MW) of capacity. This development is in response to the escalating demand for cloud services and AI infrastructure as Japan enhances its digital computing capabilities.

“Japan is one of the world’s most vital cloud and AI markets, and we’re dedicated to constructing the digital infrastructure needed for its sustainable development,” said Robin Khuda, founder and CEO of AirTrunk.

The construction has already commenced to add over 100 megawatts of IT capacity at the site to address immediate needs from cloud and technology clients.

Consortium of 12 Banks Supports AirTrunk

The financing was coordinated by a consortium of banks including Sumitomo Mitsui Banking Corporation (SMBC), MUFG, Crédit Agricole CIB, and Société Générale. A total of 12 lenders participated as mandated lead arrangers and bookrunners.

This financing follows the announcement of AirTrunk’s plans for a second hyperscale campus in Osaka and for a new headquarters in Japan. The company’s total investment in Japan exceeds $8 billion.

Once fully developed, AirTrunk’s four campuses in Japan, comprising TOK1, TOK2, OSK1, and OSK2, are projected to deliver roughly 530 MW of total capacity, establishing one of the largest hyperscale data center networks in the country.

The loan falls under AirTrunk’s Green Financing Framework, mandating that all facilities meet strict energy efficiency standards to minimize power consumption and emissions.