Singapore's STT GDC Seeks $2.4 Billion Loan, Joining AI Debt Financing Frenzy
49 minutes ago
According to people familiar with the matter, as the artificial intelligence (AI) boom continues to drive debt financing demand among infrastructure companies, Singapore-based data center operator STT GDC is in talks with banks for a SGD 3.1 billion (approx. USD 2.4 billion) syndicated loan. The loan has a three-year term, with an interest rate 165 basis points above the benchmark Singapore Overnight Rate Average (SORA), and comes with an extension option of up to two years. The proceeds will be used to finance STT GDC’s assets. This deal adds to the wave of debt financing spurred by the AI boom. Such large-scale borrowing has pushed up bond yields and raised investor concerns, prompting the market to intensify scrutiny of overvaluation among AI-related firms. Data shows that global AI-related debt financing has exceeded USD 650 billion since the start of 2025. Moody’s Ratings projects that data center-related investment will reach at least USD 3 trillion over the next five years.
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