Singapore's STT GDC seeks $2.4 billion loan, joining AI debt financing boom

BlockBeats news, November 2 - According to people familiar with the matter, as the AI boom continues to drive debt financing demand for infrastructure construction companies, Singapore data center operator STT GDC is in talks with banks for a syndicated loan of S$3.1 billion (approximately $2.4 billion).

It is understood that 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. The transaction further joins the wave of debt financing driven by the AI boom, with such large-scale borrowing pushing up bond yields and raising investor concerns, intensifying market scrutiny over overvalued AI-related companies.

Data shows that since the beginning of 2025, global AI-related debt financing has exceeded $650 billion. Moody's Ratings expects data center-related investment to reach at least $3 trillion over the next five years.