GDS is reportedly seeking to raise $3.4 billion to fund its data center operations in Malaysia.

The Chinese data center operator’s international division, DayOne, is in talks with lenders over the financing, according to a report from Bloomberg.

It is aiming to set up a five-year credit facility that would be syndicated across the financial markets, and would be split into two tranches - one of $1.7 billion and another in local currency of 7.5 billion ringgit ($1.7 billion.)

Bloomberg said it had spoken to several people familiar with the talks, and that banks had been appointed to arrange the loans.

If confirmed, it will be the largest loan raised by GDS. It has reportedly been looking at new financing for DayOne for some time, and has considered a separate IPO for its international business.

The company was founded in 2006 and operates dozens of data centers across Greater China, including Suzhou Kunshan, Chengdu, Shanghai, Shenzhen, and Beijing.

It has been trading in New York since 2016 when it raised about $200 million in an initial public offering. It was listed in Hong Kong in 2020, raising around HK$14.9 billion ($1.9 billion). STT GDC and Hillhouse are existing investors in GDS.

In Malaysia, GDS operates two facilities in Johor through DayOne, at the Nusajaya Tech Park and Kempas Tech Park, offering a total of 120MW across the two sites.

Johor is an increasingly popular market for data center operators due to its close proximity to the financial hub of Singapore, so it would be no surprise if the company were looking to expand its presence there.

DayOne did not respond to a request for comment when approached by Bloomberg.