AirTrunk Integrates ESG into A$5B Financing Platforms

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by KnowESG
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AirTrunk, a specialist in hyperscale data centres in Asia-Pacific and Japan (APJ), has connected all of its debt financing platforms to sustainability commitments. This move comes after the company raised approximately A$650 million through a Sustainability Linked Loan (SLL) in Japan.

AirTrunk has secured A$5 billion in financing across its platforms, with a focus on Environmental, Social, and Governance (ESG) criteria. This has positioned the company as one of the leading issuers of sustainable financing in the global data centre industry.

The additional SLL raised in Japan will fund the significant expansion of AirTrunk TOK1 (TOK1). It is noteworthy as it is the first SLL to be used for a data centre in Japan and the first in APJ to include both operating energy and water efficiency as Key Performance Indicators (KPIs).

Energy and water are critical resources that are interdependent and affect a data centre's environmental impact. To ensure accountability and transparency, AirTrunk maintains its focus on financing KPIs that measure actual energy usage through operating power usage effectiveness (PUE) rather than just design PUE.

AirTrunk has committed to investing any margin incentives from the Japan SLL into social impact initiatives in Japan. The company plans to expand this program across APJ to support long-term initiatives that align with its purpose of advancing and maintaining the region's digital future. These initiatives will focus on four areas: Equal Digital Access, STEM Education, Biodiversity and Conservation, and Innovation and Research & Development.

This new SLL follows AirTrunk's previous sustainable financing initiatives, including the TOK2 green loan in September 2022, which was the first of its kind for a data centre in Japan. In addition, the company announced its inaugural A$2.1 billion corporate SLL in September 2021, which set several industry benchmarks. It was the largest SLL globally at the time, the first of its kind for a data centre in APJ, and the first to use operating PUE as a KPI.

AirTrunk Chief Financial Officer, Prashant Murthy, said: “By driving innovation in sustainable financing and creating a lasting impact in our communities, we are committed to powering positive industry change.

“We have now linked all our debt platforms to sustainability commitments, more than doubling our sustainable financing since our inaugural SLL launched in 2021. Our sustainable finance platform complements our recent commitment to net zero emissions by 2030.”

AirTrunk is expanding its TOK1 flagship data centre in response to the growing demand for hyperscale digital infrastructure in Japan. The TOK1 data centre, located in Inzai, Chiba prefecture, near Tokyo, will be expanded to include a new 55MW building as part of a larger campus with a capacity of over 300MW. The expansion aims to meet the needs of a significant new technology customer.

AirTrunk Head of Japan, Nori Matsushita, said: “Today’s announcement marks another major milestone for AirTrunk as we continue to sustainably enable Japan’s digitalisation through the sustainable financing, design, build and operations of our data centres.”

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Source: AirTrunk


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