AirTrunk Secures A$4.25 Billion Green Loan to Expand Sydney AI Data Centre

Australian hyperscale data centre developer AirTrunk has secured an A$4.25 billion green loan to finance the continued expansion of its SYD3 campus in Western Sydney, strengthening infrastructure supporting artificial intelligence, cloud computing and digital services. Announced on 27 October 2026, the financing is backed by 32 Australian and international financial institutions, making it one of the largest lending consortiums assembled for a data centre financing transaction in Australia, according to the company.

The investment will support additional digital infrastructure capacity while incorporating measures intended to reduce the environmental impact of data centre construction and operations. The expanded campus, being developed by construction company A W Edwards, is expected to be completed by mid-2028 and support more than 10,000 jobs across construction, engineering, logistics, electrical services and related industries.

 

A$4.25 Billion Green Loan Attracts 32 Financial Institutions

 

The financing was arranged through a consortium of 32 lenders, including 14 lead underwriting banks. Participants include BNP Paribas, Deutsche Bank, ING, Mizuho, MUFG, National Australia Bank, HSBC, Société Générale and Sumitomo Mitsui Banking Corporation. HSBC, Sumitomo Mitsui Banking Corporation and United Overseas Bank acted as Green Loan Coordinators. The transaction brings AirTrunk's total committed debt financing to approximately A$38.4 billion globally, including more than A$19.8 billion supporting its Australian projects.

The loan includes margin adjustments, with any contributions arising from margin savings directed towards AirTrunk's social impact programme. The programme supports local organisations working on STEM education, digital inclusion, biodiversity conservation, sustainable innovation and disaster relief. While the financing introduces a mechanism connecting financial benefits with community investment, AirTrunk has not disclosed the specific margin adjustment criteria or the amount expected to be allocated to social initiatives.

 

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SYD3 Expansion Supports Australia's Growing AI Infrastructure

 

The expanded SYD3 campus will provide additional computing and storage infrastructure for cloud services, artificial intelligence and enterprise applications. Demand for these facilities is increasing as businesses and public institutions expand their use of digital technologies, requiring secure, reliable and scalable data processing capacity.

AirTrunk currently operates an Australian platform spanning five campuses with more than 1.2 gigawatts (GW) of capacity. The company reports having invested over A$12 billion in Australian projects and plans to invest a further A$75 billion over the next decade. The latest green loan forms part of its broader financing strategy, although the A$75 billion figure represents a forward-looking investment plan rather than committed expenditure.

 

Lower-Carbon Construction Supports Net Zero 2030 Goals

 

Sustainability measures at SYD3 include using lower-carbon steel and concrete to reduce emissions associated with construction materials. The project also targets diverting at least 90% of non-hazardous construction waste from landfill, supporting more resource-efficient construction and waste management practices. These measures address embodied carbon and material consumption, two important environmental considerations associated with large-scale data centre development.

The financing also supports AirTrunk's target of achieving net-zero Scope 1 and Scope 2 emissions by 2030 through energy efficiency, renewable electricity matching and lower-carbon technologies. The company is additionally pursuing reductions in Scope 3 emissions, including those associated with building materials and construction activities. However, the announcement does not provide independently verified emissions reductions from SYD3 or confirm that the campus has achieved its construction waste diversion target.

 

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Western Sydney Supply Chain and Workforce Development

 

AirTrunk expects the expansion to generate opportunities for contractors, suppliers and workers across Western Sydney and the wider Australian economy. The project involves industries including steel manufacturing, precast concrete, freight transport, electrical installation and mechanical engineering. During the 2026 financial year, AirTrunk worked with 1,436 supplier entities across Asia-Pacific, including 615 in Australia, representing A$3.4 billion in Australian supplier activity across its broader operations.

To support construction logistics, the company is using a 25,000-square-metre facility in Western Sydney for storing, staging and pre-commissioning critical data centre equipment. AirTrunk has also invested in dedicated time-charter vessels to improve equipment transportation through Port Botany and Port Kembla. Alongside these measures, the company is supporting apprenticeships, vocational education partnerships and technical skills development to strengthen Australia's digital infrastructure workforce.

 

Green Financing Connects Digital Growth With Sustainability

 

The transaction demonstrates the scale of institutional financing supporting Australia's expanding data centre industry. As AI and cloud computing increase electricity demand, infrastructure developers face growing expectations to improve energy efficiency, manage construction emissions and consider the wider environmental and social effects of new facilities.

Tom Mackellar, Vice President of Origination and Market Expansion at AirTrunk, said, "The green financing also reflects our view that sustainability should be built into how digital infrastructure is funded and delivered." The company intends to combine its expansion strategy with workforce development and community investment programmes.

The A$4.25 billion financing provides capital for the continued development of SYD3, but its environmental outcomes will depend on project implementation and operating performance. Progress towards AirTrunk's net-zero commitments, the use of lower-carbon building materials and achievement of construction waste targets will be important measures of how effectively sustainability considerations are integrated into the campus.

As Australia continues investing in AI and digital infrastructure, financing arrangements such as this could play an increasing role in supporting large-scale development while encouraging greater attention to environmental performance and community benefits.

 

Source: AirTrunk