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 E&S Instrument for the Project is the Environmental and Social Management Plan (ESMP). The ESMP consists of two components: an Environmental Management Plan (EMP), prepared by the EPC Contractor and currently being implemented during the construction phase, and an Operational ESMP (o-ESMP), which will be developed and disclosed prior to the commencement of Project operations. 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 E&S 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 wastes. 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), 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 (OHS), Labor and Worker Conditions (LWC). 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 safety oversight implemented by the principal contractor. 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 highlights the importance of effective contractor oversight, verification of worker qualifications and permits, and compliance with applicable labor and occupational health and safety regulations.
Stakeholder Engagement, Consultation and Information Disclosure. Stakeholder engagement for the Project shall be conducted in a manner commensurate with the nature and scale of the Project’s ES risks and impacts, and proportionate to the characteristics of affected stakeholders, in accordance with AIIB’s ESP. Accordingly, the Client shall ensure that stakeholder engagement and consultations are carried out in a transparent, inclusive, and safe manner, with timely disclosure of relevant Project information. The format, timing, and methods of stakeholder engagement will be further refined and implemented through the SEP and related ES instruments, considering Project risks, stakeholder needs, and accessibility considerations. The English version of ESAP and a summary of o‑ESMP in local language shall be disclosed timely on the Client’s website or other appropriate public platforms, in line with AIIB’s requirement.
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. The GRM shall address, but not be limited to, grievances related to labor and working conditions, occupational health and safety, gender‑related issues (handled in a gender‑sensitive and confidential manner), and any other adverse impacts arising from Project implementation. An active workers’ grievance mechanism is in place for the Project site. 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, a notice board displaying Project contact details and grievance submission information has been installed at the site entrance to allow any individual to raise concerns related to the Project. In addition, the 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 based on agreed format. AIIB will monitor the implementation of ESAP and ESMP through desk reviews, regular engagement with the Company, and site visits, as appropriate. More details will be discussed and determined with the client during the final review.
Epoch Digital Pte Ltd / Actis GP LLP
Kwek Jia Ling – Finance Director / David Tran – Principal
