Hyperscaler firm AirTrunk has secured a $1.24 billion loan to build a new data center in Tokyo, as per an official press release on Tuesday. The facility, once constructed, will now be used to support workloads as demand for infrastructure that can power data and AI workloads goes up.
The debt is expected to be used for refinancing and to fund the company’s TOK1 project, a data center which the official statement says is located in Tokyo. The financing was led by the following companies: SMBC, MUFG, Chiba Bank, and Mizuho Bank, and will be part of AirTrunk’s green financing framework.
AI infrastructure companies, tech firms, and hyperscalers are now turning to bond markets, banks, and shareholders to raise capital to fund projects that are estimated to run into the billions of dollars.
Alphabet reportedly tapped bond markets last month to raise $15 billion and sold $25 billion worth of corporate bonds in November 2025 to fund its investments and projects in AI infrastructure.
Estimates as to how much hyperscalers will spend on infrastructure vary widely, but the widely held consensus is that capital expenditures are expected to run in the hundreds of billions of dollars. In December 2025, Goldman Sachs said data center expenditure would run up to $644 billion by 2027.
AirTrunk CEO Robin Khuda has identified Japan as one of the key markets for AI and data centers.
“AirTrunk has been investing deeply in Japan for this reason – to build the hyperscale platform that will underpin the country’s digital future and connect it to the broader region,”
Tech companies are also facing flak from investors who have loaned substantial capital for projects.
For instance, bondholders launched a class action lawsuit against Oracle, claiming that the firm was not clear as to how much financing it needed, creating higher credit risk for investors when it tapped the market again for additional financing of $38 billion.