SINGAPORE — Blackstone-backed data centre operator AirTrunk is preparing for a potential Singapore real estate investment trust listing that could raise about US$1.5 billion, putting one of Asia’s largest digital infrastructure platforms at the centre of a growing test for data centre financing and investor appetite.
AirTrunk has been targeting a September or October launch for the proposed REIT IPO, according to people familiar with the matter cited by Reuters. The company has filed confidentially and has held discussions with potential cornerstone investors, although the timing and size of the transaction could still change depending on market conditions.
The proposed transaction comes as investors continue to channel capital into data centres supporting cloud computing and artificial intelligence. But the market is becoming more selective as higher interest rates, large construction requirements and questions over valuations increase the pressure on operators to demonstrate predictable cash flows.
AirTrunk’s proposed Singapore vehicle would provide investors with exposure to data centre assets across several Asia-Pacific markets. Recent reporting indicates the portfolio could include assets in Singapore, Japan, Hong Kong and Australia, while AirTrunk’s wider operating footprint also extends to markets including India, Malaysia and Saudi Arabia.
The company was acquired in 2024 by Blackstone and Canada Pension Plan Investment Board, in a transaction that valued AirTrunk at more than A$24 billion, or about US$16.8 billion at the time. The deal transformed AirTrunk into one of the most significant privately held data centre platforms in the Asia-Pacific region.
The financing structure is becoming an equally important part of the story. In September, AirTrunk was reported to be in talks with banks for about S$2 billion of debt financing for the proposed REIT, with potential maturities ranging from three to seven years in Singapore dollars and Japanese yen. The debt could be used to acquire assets from AirTrunk and refinance existing borrowings.
That financing requirement highlights a broader issue facing the sector. Data centre lending in Asia has expanded rapidly, with Bloomberg data cited by The Business Times putting regional data centre loans at nearly US$29 billion since the beginning of 2025. Banks, however, have become more selective as exposure to the sector approaches internal lending limits.
AirTrunk is also expanding its physical infrastructure while preparing for the capital-markets transaction. Its development pipeline includes large facilities in Australia and other Asian markets, increasing the amount of capital required to build capacity for cloud and AI customers. The company recently secured US$2.3 billion of green financing for its Johor data centre campus, illustrating the scale of funding required by the next generation of digital infrastructure.
For Singapore’s capital market, the proposed transaction carries significance beyond AirTrunk itself. A US$1.5 billion REIT offering would be one of the country’s largest IPO-related transactions in years, at a time when Singapore is seeking to strengthen its position as a regional market for infrastructure and real-estate investment vehicles. Bloomberg previously reported that such a deal could become Singapore’s largest IPO since 2017.
The challenge is that the AI infrastructure boom is colliding with a more demanding capital market. Recent data-centre IPO activity has shown increasing investor scrutiny of valuation, contracted demand, operating capacity and financing requirements, even as demand for computing infrastructure continues to grow.
For AirTrunk, the proposed Singapore listing therefore represents more than an effort to raise capital. It could become a test of whether investors are prepared to value data centre infrastructure primarily on the expected growth of AI demand, or place greater emphasis on current cash generation, financing costs and the structure through which those assets are offered to public investors.
