How private credit is funding the data centre buildout across Asia Pacific, and what data centre developers, operators, and acquirers need to know about accessing non-bank capital.
Published by
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
30 years of institutional finance. Former hedge fund founder. Senior roles at top global investment banks. GMG Capital Advisory arranges private credit and special situations finance of $10M–$100M for operating companies across Asia Pacific.
[email protected] | +65 9773 0273 | Singapore · Hong Kong | Asia-Pacific
Data centre financing in Asia Pacific is one of the most active and fastest-growing segments of the private credit market. The structural demand for digital infrastructure, driven by cloud adoption, enterprise digitalisation, and AI infrastructure requirements, has created capital needs that the banking system cannot fully meet.
Data Centre Finance is one of the most active and underserved sectors in Asia Pacific private credit. The capital is available, if you know where to find it.
Why Banks Are Pulling Back from This Sector
Data centre financing sits at an uncomfortable intersection for conventional bank lenders. The assets are specialised, making collateral valuation complex. Development timelines are long, requiring construction-phase financing that banks are increasingly reluctant to provide. And the sector's rapid evolution means credit committees without specific sector expertise struggle to assess individual transaction quality. Regulatory capital requirements add a further layer, specialised property assets attract higher risk-weightings under Basel frameworks than standard commercial real estate, making bank financing for data centre development systematically constrained relative to the sector's capital needs.
Collateral and Security in This Sector
Physical infrastructure: The data centre building, raised floor infrastructure, power and cooling systems, and networking equipment.
Power purchase agreements: Long-term contracts for power supply at fixed or formula prices. PPAs from credible counterparties provide a contracted cost floor that supports the data centre's operating economics.
Colocation and offtake contracts: Long-term agreements with enterprise customers or hyperscalers (AWS, Microsoft Azure, Google Cloud). Hyperscaler contracts are the gold standard of data centre collateral, a facility with a contracted hyperscaler tenant is among the most bankable assets in the sector.
Land and real property: The underlying land and building, where owned rather than leased. Provides a hard asset floor to the security package.
GMG Capital Advisory in This Sector
GMG Capital Advisory has arranged private credit for data centre development and acquisition transactions across Asia Pacific. We understand the specific collateral requirements, hyperscaler contract dynamics, and power infrastructure considerations that determine credit quality in this sector. If you are developing, expanding, or acquiring data centre assets and require capital your bank cannot provide, speak to us.
About GMG Capital Advisory
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
Donald Klip has 30 years of institutional finance experience spanning hedge fund management and senior roles at the world’s top global investment banks. GMG Capital Advisory specialises in arranging and structuring corporate debt financing of $10M–$100M for operating companies, asset owners, and project sponsors where conventional bank lending is unavailable, insufficient, or too slow. We operate across 23+ jurisdictions in Asia Pacific.
www.gmg.asia | [email protected] | +65 9773 0273 | Singapore · Hong Kong
The Debt Desk
Corporate private credit intelligence for Asia Pacific’s $10M–$100M middle market. Published by GMG Capital Advisory. Part of the Private Credit Asia content series.
www.gmg.asia | Read all 41 articles in the series
