AirTrunk lands record JP¥191.6bn green loan for TOK1

AirTrunk has secured a JP¥191.6 billion green loan, worth about USD $1.24 billion, to refinance and further develop its TOK1 hyperscale data centre campus in east Tokyo.

AirTrunk called it the largest data centre financing completed in Japan. The deal signals rising capital market appetite for large-scale digital infrastructure as demand grows for cloud services and AI computing.

Campus build

The loan sits under AirTrunk's Green Financing Framework. Proceeds will refinance existing facilities and fund capital expenditure for the next development phases at TOK1.

TOK1 is designed as a multi-building campus and is scalable to more than 300MW. The next phases will add capacity, with construction underway that will add more than 100MW of IT load to meet near-term customer demand.

Hyperscale developments typically provide large blocks of power and space for a small number of major customers. In Japan, the sector has faced tight power availability in some regions and increased scrutiny of energy use. Developers and financiers have stepped up their focus on efficiency metrics and low-carbon power sourcing.

Bank group

SMBC, MUFG, Crédit Agricole CIB and Société Générale acted as global coordinators. In total, 12 banks served as mandated lead arrangers and bookrunners.

The wider banking group included BNP Paribas, Chiba Bank, DBS, E.SUN Commercial Bank, Mizuho, Natixis, Oversea-Chinese Banking Corporation and United Overseas Bank.

"Japan is one of the world's most important cloud and AI markets, and we're committed to building the digital infrastructure that enables its long-term growth. AirTrunk has been investing deeply in Japan for this reason - to build the hyperscale platform that will underpin the country's digital future and connect it to the broader region. This landmark financing enables us to accelerate the expansion of TOK1 and continue delivering the capacity our customers need today, while preparing Japan for the extraordinary compute demands ahead," said Robin Khuda, Founder and Chief Executive Officer of AirTrunk.

Japan footprint

The TOK1 financing comes as AirTrunk expands across Japan. It has announced a second Osaka campus, OSK2, alongside a new Japan headquarters.

AirTrunk said its total investment in Japan has exceeded USD $8 billion, or about JP¥1.2 trillion, covering existing and planned projects over the coming years.

At full build-out, AirTrunk said its four Japan campuses-TOK1, TOK2, OSK1 and OSK2-will deliver about 530MW of total capacity for cloud and AI workloads. That would place the company among the largest hyperscale operators by capacity in the Japanese market.

"This is the largest data centre financing ever completed in Japan and a testament to the deep collaboration between AirTrunk and our banking partners. We're especially grateful for the strong support from Japan's leading financial institutions, including SMBC, MUFG, Chiba Bank and Mizuho Bank. The structure of the facility reflects our commitment to transparency, sustainability, and innovation in capital markets, and further strengthens AirTrunk's financing platform across the region," said Masato Hori, Associate Vice President, Treasury Japan, AirTrunk.

Green criteria

AirTrunk said the loan meets its energy-efficiency standards, which require data centres to operate more efficiently than the regional average and use less energy for the same compute power. The company linked this approach to its 2030 net-zero commitments for Scope 1 and Scope 2 emissions. 

The financing includes margin incentives that AirTrunk said will be directed to its Social Impact Fund in Japan. The fund supports community initiatives including STEM education, digital equity, biodiversity and conservation, sustainable innovation, and disaster relief.

"This milestone reflects our credibility in delivering sustainable digital infrastructure at scale and the strength of our relationships with financial markets in Japan. As we expand TOK1, we remain focused on supporting local communities, investing in resilient infrastructure, and contributing to Japan's digital transformation," said Nori Matsushita, Head of Japan, AirTrunk.

Policy backdrop

The transaction comes as Japan promotes green and transition finance as part of its Green Transformation strategy. The government aims to mobilise JP¥150 trillion of public and private investment linked to decarbonisation and next-generation infrastructure.

Japan's AI policy planning has also highlighted the role of hyperscale data centres in national compute capacity and data localisation. Developers have stepped up investment as technology companies and public-sector bodies assess domestic infrastructure needs for AI training and inference workloads.

"AirTrunk's TOK1 campus represents the scale, efficiency, and innovation required to support Japan's rapidly expanding cloud and AI ecosystem. SMBC is proud to act as Global Coordinator for this landmark transaction, which demonstrates how green financing can channel capital toward mission critical digital infrastructure while advancing the nation's GX agenda," said Takehisa Manabe, General Manager, Global Structured Finance, Sumitomo Mitsui Banking Corporation.

The funding underscores the growing convergence of sustainability and digital infrastructure, with MUFG Bank, Crédit Agricole CIB, and Societe Generale highlighting the importance of responsible financing, energy efficiency, and high-performance data centre solutions to meet surging demand from AI and cloud technologies.

"This financing showcases the important role that financial institutions play in enabling sustainable growth in Japan's digital economy. As Global Coordinator/Structuring Bank and syndication lead, MUFG strongly shares AirTrunk's commitment to energy efficiency and long-term investment, which aligns with our priorities in responsible financing, and we are pleased to support the next phase of development at TOK1," said Daisuke Bito, MUFG Bank, Ltd. Managing Executive Officer, Head of Financial Solutions Group.

"As a global leader in green and sustainable finance, Crédit Agricole CIB is proud to partner with AirTrunk on a project that sets a new benchmark for data centre financing in Japan. The transaction reflects growing investor confidence in high-efficiency digital infrastructure that can meet the surging demand for compute capacity driven by AI and cloud technologies," said Satoshi Oda, Crédit Agricole CIB Managing Director, Head of Corporate and Leveraged Finance/Distribution and Asset Rotation.

"This milestone financing highlights the increasing convergence of sustainability and digital transformation. Societe Generale is delighted to support AirTrunk as it expands TOK1, delivering the resilient and low-carbon infrastructure that Japan's technology sector requires to thrive in the AI era," said Eugene Tan, Societe Generale Co-head of Infrastructure and Telecom, Media & Technology for Asia Pacific.