Crédit Agricole CIB welcomes the second edition of data centre financing conference

As artificial intelligence (AI) tools are getting more common with the use of generative AI increased from 33% in 2023 to 71% in 2024, the pressure for building more data centres intensifies. Crédit Agricole CIB estimates that over US$200 billion of financing is needed to fund the capacity to meet global data centre capacity demands from 2025 to 2027.

To grasp opportunities, Crédit Agricole CIB is helping clients stay ahead of trends. After the success of the first edition in June 2024, the Bank hosted for the second consecutive year a dedicated data centre event in Singapore on 29 May 2025, welcoming more than 100 investors, operators, rating agencies, legal, financing and ESG experts to explore the sector’s outlook. This year, attendees explored topics ranging from financing strategy and capital market solutions, evolving technical requirements, to balancing data centre growth and sustainability.

In case you missed it – check out our last year’s thought leadership article on data centre Will open in a new tab

We spoke with Jasmine Zhang, Head of Telecom Finance for Asia-Pacific, to learn about the trends in data centre financing, how has the sector been advancing, and what shall investors expect in the coming years.
 

Hi Jasmine! As this is the second year of data centre financing conference, could you tell us how has the sector evolved since the last year?

Since last year, we have seen the sector undergoing transformative changes driven by technological innovation, sustainability imperatives, and shifting market dynamics.

The AI application driven by the 5G and edge computing synergy, has been rapidly adopting a wide range of use cases across various industries and fuelling unprecedented demand for high-performance computing, driving hyperscalers to aggressively expand infrastructure. These factors have led to space shortages and increase demand for electricity in major markets. Consequently, the situation has raised rack-density, prompting the need for innovations in cooling technologies.

On the supply side, power and supply chain constraints have lengthened data centre construction timelines. On the other hand, these constraints have pushed the operators to adopt more innovative energy solutions, including on-site power generation and renewable energy integration to respond to the increasingly tightened regulation, address social challenges and create benefits for local communities.

Due to power constraints in traditional data centre hubs, we also observed significant geographic expansion into tier 2 cities and emerging markets, for example, in EMEA cities like Warsaw, Dubai, and Lagos, as well as Johor Bharu, Mumbai and Jakarta in Asia-Pacific. In addition to market shifts, global and regional operators are adjusting their strategies to address the supply chain challenges. They are forming joint ventures with local partners and prioritising vendor relationships to ensure a stable supply of critical components.

Looking forward, we see the sector’s priorities and operational strategies will continue to be shaped by sustainability mandates, geographic expansion into emerging markets, and hybrid cloud-edge computing architectures.
 

How can decarbonising data centre help the warming globe? Why has this remained to be a key topic?

Data centre is one of the most energy-intensive infrastructures and accounts for approximately 2% of global electricity use which is expected to rise to 4% by 2030 due to AI growth. Hence, each step we take to decarbonise data centres is key to directly reduce the sector’s significant carbon footprint and mediate global warming. New technologies such as carbon capture and storage are effective ways to enable decarbonisation in data centres while setting sustainability benchmarks for other industries to follow, amplifying climate impact globally.
Due to data centre’s unique nature as a major energy consumer and a catalyst for global climate actions, embracing decarbonisation is fundamental to the sector’s future. As the rising energy costs and power grid constraints make reliance on fossil fuels unstainable, transitioning to renewables ensures long-term operational stability and cost predictability. Decarbonisation is no longer optional but a strategic imperative for the sector’s economic survival.

When it comes to sustainability-linked financing solutions, Crédit Agricole CIB is a strategic banking partner committed to guiding data centre players towards the next level of sustainability and navigating the dual challenges of exponential data centre growth, coupled with the need for decarbonisation.

What makes a good data centre financing?

In a sector where energy, regulatory and technological shifts are constant like data centre, a winning financing strategy should combine scalability, sustainability and risk mitigation while aligning with global trends like AI growth, decarbonisation and renewable energy transitions.

A good data centre financing should have a defined and measurable set of ESG goals to align the operator’s interest with the community. The financing should also be rightly structured to provide a source of scalable long-term capital that is compatible with the operators’ growth strategy and attract ESG-focused investors.

Furthermore, the financing strategy will need to be flexible enough to allow different pools of liquidity and cater for the various business needs across the development cycle, from greenfield single-asset projects to a portfolio of operational assets across jurisdictions.

Leveraging Crédit Agricole CIB’s global sector expertise and award-winning sustainable financing capability, we have assisted data centre operators like AirTrunk, Bridge Data Centres, DayOne and Digital Edge, in developing financing strategies that balance scalability with sustainability and risks mitigation while addressing sector-specific risks like power and water shortages and regulatory shifts.

Anything else you’d like to share?

To thrive in the era of AI, data centre operators require more responsible financing that could achieve a “triple win” ─ for businesses, communities, and the planet. The future relies on those who fund infrastructure that is scalable, sustainable and resilient, not just profitable. Crédit Agricole CIB is committed to building that future together with our data centre clients, step by step, watt by watt.