Banks expand financing for growing data center sector

Banks are increasingly competing to finance the growing data center sector, driven by rising demand for digital infrastructure, cloud computing, and artificial intelligence. In Asia, credit for data center projects has reached nearly US$ 29 billion since the start of 2025, with this year's value hitting US$ 15 billion, a 27% increase compared to the same period last year.

Despite the growth, banks in the Asia-Pacific region are becoming more selective in their lending due to significant existing exposure to the sector. In Indonesia, EDGE (a subsidiary of PT Indointernet Tbk) secured a US$ 530.2 million credit facility on September 2, 2026, from various financial institutions, including Bangkok Bank, Bank of China Jakarta, First Abu Dhabi Bank, MUFG Bank, BNP Paribas Indonesia, CIMB Niaga, DBS Indonesia, Permata Bank, and OCBC NISP.

Permata Bank maintains that while the sector offers positive growth prospects aligned with Indonesia's digital needs, lenders must apply cautious principles to ensure high credit quality.