To finance the development of a green hyperscale data center in Malaysia, enhancing digital infrastructure to meet the growing digital economy demand and improve regional connectivity.
The Project involves the development, construction, and operation of a green hyperscale DC facility in Malaysia. The facility will have an initial IT capacity of 60MW within a campus designed for a total IT capacity of 120MW (the “Project”). AIIB’s financing will support the development of the first 60MW phase, which is fully contracted under an off-take agreement with BytePlus. The Project is sponsored by Actis, and will be implemented by Epoch Digital, an Actis portfolio company.
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESS) 1 (Environmental and Social Assessment and Management), apply to the Project. Land acquisition for the Project was completed prior to AIIB financing, and no Indigenous Peoples are affected, therefore, ESS 2 (Land Acquisition and Involuntary Resettlement) and ESS 3 (Indigenous Peoples) are not applicable. The Project is classified as Category B, as its potential environmental and social (ES) risks and impacts are site-specific, limited in scale, and can be mitigated through the application of good international industry practice.
Environmental and Social Instruments. The primary ES Instrument for the Project is the Environmental and Social Management Plan (ESMP). The current ESMP consists of plans and procedures at the construction phase and is under ongoing implementation. This will be updated to include an operational phase and completed for disclosure prior to the commencement of Project operations. Overview of c-ESMP and other project-related ES documents in English and local languages are disclosed by Client here. In addition, an Environmental and Social Action Plan (ESAP) has been prepared to summarize the implementation-staged ES plans that will be completed by Actis according to the ESAP timeline. Actis will also engage an independent ES adviser to annually assess the Project’s compliance with the ESAP, ESMP, and other AIIB requirements.
Environmental and Social Aspects. The ES due diligence (ESDD) assessed the key environmental risks associated with the Project. As of this stage, there are no outstanding unresolved environmental concerns that have been raised by the stakeholders in relation to the ongoing construction activities. During the current construction stage, although the Project is nearly completed, the environmental impacts are primarily associated with air emission and dust dispersion, generation of wastewater and noise from construction equipment and machinery, accumulation of construction waste and potential contamination of soil and groundwater. These impacts are temporary, localized and of relatively low significance and are managed through standard industrial practices and ES management procedures being implemented by the appointed EPC Contractor under its EMP. Operation stage is anticipated to cause environmental impacts due to the significant consumption of energy, water and generation of waste including hazardous waste. Epoch Digital has adopted a sustainability strategy focused on efficient energy and water use. A water resource management plan will be developed to identify potential alternative water sources, mitigate risks related to water stress, and address potential conflicts or competition over water resources. The Project will implement a hybrid cooling system to improve thermal efficiency and reduce power consumption. Currently, water supply requirements for the Project have been coordinated with the water supplier company. The Project is located on freehold land within the Nusa Cemerlang Industrial Park (NCIP) within the Nusajaya Tech Park DC cluster, which was previously used as an oil palm plantation prior to the 1990s and has since been designated for industrial development. Land amalgamation and transfer have been completed, and no physical displacement or resettlement has occurred.
Occupational Health and Safety, Labor and Worker Conditions. Located in an industrial park approved by Malaysian authorities for data centers, Client has conducted a preliminary assessment and has a dedicated Environmental, Health and Safety (EHS) Plan for its design and construction phases. Health and safety management arrangements are in place, with site‑specific HSE facilities, induction procedures, and HSE Manager oversees the maintenance of overall worker health and safety during construction. The construction workforce is contractor‑based, with multiple subcontractors engaged under the principal contractor. The report did not identify material labor‑related legacy issues but highlighted the importance of effective contractor oversight, verification of worker qualifications and permits, and compliance with applicable labor and occupational health and safety regulations throughout construction, commissioning, and operations, in accordance with AIIB ESS1.
Stakeholder Engagement, Consultation and Information Disclosure. Stakeholder engagement for the Project is conducted in accordance with AIIB’s ESP (ESS1), proportionate to the Project’s risks and affected stakeholders. Based on the Client’s Corporate Social Responsibility (CSR) program, engagement focuses on long‑term partnerships with local communities and academic institutions, including university collaboration, internships and apprenticeships to support skills development, and community initiatives with local social welfare organizations. The approach will be further refined through the Stakeholder Engagement Plan (SEP), which will be enhanced during operation as committed under the ESAP. Project ES documents, including the Overview of c-ESMP and ESAP, have been disclosed on the Client’s website in English and local languages (see link above).
Project Grievance Redress Mechanism (GRM). A project-level GRM has been established to provide project-affected people, workers, and other stakeholders with accessible, transparent, and fair channels to raise concerns and seek resolution of issues related to the Project, including labor and working conditions, occupational health and safety, and gender‑related issues. An active workers’ grievance mechanism is in place for the Project site and overseen by the Project Safety Committee. As of the reporting date, no grievances have been recorded. Given that the Project is located within an established industrial park‑ and no residential communities are located in close proximity to the Project site, community level impacts are expected to be limited. Nevertheless, Project contact details and grievance information are publicly displayed at the site entrance. In addition, the Borrower has disclosed corporate‑level grievance and whistleblowing mechanisms.
Monitoring and reporting Arrangements. The Client will report to AIIB on the implementation of the ES instruments and progress against the ESAP and ESMP annually according to AIIB requirements. AIIB will monitor the implementation of ESAP and ESMP through desk reviews, regular engagement with the Company, and site visits, as appropriate.
Epoch Digital Pte Ltd / Actis GP LLP
Kwek Jia Ling – Finance Director / David Tran – Principal
