STT GDC Seeks $2.4 Billion Loan Amid AI Debt Financing Surge

Singapore data center operator STT GDC is in talks with banks for a syndicate loan of S$3.1 billion (approximately $2.4 billion), with a three-year term and an interest rate 165 basis points above the average Singapore Overnight Rate Average (SORA), along with an option for a two-year extension. The funds will be used to finance STT GDC's assets. This transaction reflects the debt financing demand driven by the AI boom, which has led to rising bond yields and raised investor concerns about the valuations of AI-related companies. Since the beginning of 2025, the global debt financing scale related to AI has exceeded $650 billion, and Moody's ratings expect that investments related to data centers will reach at least $3 trillion over the next five years.

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