Inside AirTrunk's $1.2bn Major Construction Opportunity

AirTrunk has secured a JP¥191.6bn (US$1.2bn) green loan to refinance and expand its TOK1 hyperscale data centre campus in East Tokyo, marking the largest data centre financing completed in Japan.

The funding represents a significant construction and infrastructure development opportunity as the country addresses growing demand for digital facilities.

The hyperscale data centre operator will use the loan to refinance existing facilities and support the next phases of development at TOK1, which is designed to scale to more than 300 MW of capacity.

The expansion will require substantial construction work to provide additional infrastructure supporting cloud platforms and AI workloads.

Structured under AirTrunk's Green Financing Framework, the company recently began construction on an expansion that will add more than 100 MW of IT load to the Tokyo campus, requiring significant building and mechanical, electrical and plumbing (MEP) installation work.

Financing hyperscale infrastructure development

According to AirTrunk, the financing was led by SMBC, MUFG, Crédit Agricole CIB and Société Générale as Global Coordinators. A further eight banks participated as Mandated Lead Arrangers and Bookrunners including BNP Paribas, The Chiba Bank, DBS Bank, E.SUN Commercial Bank, Mizuho Bank, 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," says Robin Khuda, Founder and Chief Executive Officer of AirTrunk.

"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."

Construction pipeline grows across Japan

The loan forms part of AirTrunk's broader expansion strategy in Japan, where the company has invested heavily to support the country's accelerating adoption of cloud computing and AI services.

The operator recently announced OSK2, its second hyperscale data centre in Osaka, alongside the establishment of a new Japan headquarters. Combined with existing developments, AirTrunk's investment in Japan now exceeds US$8bn. Across four campuses – TOK1, TOK2, OSK1 and OSK2 – the company expects to deliver approximately 530 MW of total capacity once all facilities are fully built.

These campuses are designed to support both domestic and global technology customers operating high-density computing platforms, requiring specialised construction techniques and advanced building systems.

"This is the largest data centre financing ever completed in Japan and a testament to the deep collaboration between AirTrunk and our banking partners," says Masato Hori, Associate Vice President Treasury Japan at AirTrunk.

"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."

Building to sustainability standards

The financing aligns with AirTrunk's sustainability commitments and Japan's broader energy transition strategy. Under the company's Green Financing Framework, funded projects must meet strict energy-efficiency standards designed to ensure data centres operate significantly more efficiently than regional averages through advanced building design and construction methods.

The initiative also supports AirTrunk's 2030 Net Zero (Scope 1 & 2) commitments. Margin incentives linked to the loan will be directed into the AirTrunk Social Impact Fund, supporting community initiatives across Japan including STEM education, digital equity programmes, biodiversity and conservation projects, sustainable innovation and disaster relief.

"This milestone reflects our credibility of delivering sustainable digital infrastructure at scale and the strength of our relationships with financial markets in Japan," says Nori Matsushita, Head of Japan at AirTrunk.

"As we expand TOK1, we remain focused on supporting local communities, investing in resilient infrastructure and contributing to Japan's digital transformation."

The expansion aligns with Japan's national digital and energy strategies. The government's Green Transformation programme aims to mobilise ¥150 tn in public and private investment to accelerate decarbonisation and next-generation infrastructure. Japan's Basic Plan for Artificial Intelligence identifies hyperscale data centres as a critical component of national compute capacity – areas that AirTrunk's Tokyo expansion is intended to support through substantial construction and infrastructure development.