(Bloomberg) -- Bain Capital-owned data center operator Chindata Group Holdings Ltd. is in discussions with lenders for a potential loan of around $2.8 billion, according to people familiar with the matter, in what would be its largest bank financing ever.
Proceeds of the five-year facility would be used to refinance some of the firm’s existing loans and fund its expansion plans in Malaysia, said the people, who asked not to be identified as the matter is private. Discussions are ongoing and details could change, the people said.
Potential financiers — comprising international and regional banks — were told that Chindata’s Malaysia campus will be used by ByteDance Ltd., among others.
A representative at Bain Capital declined to comment, while Chindata and ByteDance didn’t respond to a request for comment.
Chindata’s planned loan comes after it obtained nearly $500 million in July to refinance an existing facility for its Malaysian unit. It also underscores the vast financing needs for data centers as firms in the region look to meet the growing demand for services linked to artificial intelligence.
Southeast Asia’s data consumption and computing growth will require investments of as much as $60 billion in infrastructure, which includes server centers, towers and fiber networks, according to a 2023 study from consulting firm Arthur D. Little.
The state of Johor, which borders Singapore, has been a beneficiary of this booming demand. Global data center operator Yondr Group Ltd. is seeking private debt to fund a facility in Asia, while Shanghai-based GDS Holdings Ltd. is raising around 10 billion ringgit ($2.3 billion) to fund its operations in Malaysia.
Founded in 2015, Chindata runs hyperscale data centers in China’s major economic centers, including Greater Beijing, the Yangtze River Delta around Shanghai and the Greater Bay Area in the country’s south. The firm also has operations in India, Malaysia and Thailand, according to its website. Bain Capital took the company private last year in a deal worth about $3.2 billion.
(Updates with details related to ByteDance in third and fourth paragraphs)
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