Green Loan

A green loan is a debt facility whose proceeds are earmarked for projects with defined environmental benefits. Such projects include energy-efficient or renewable-powered data centers, and the loan follows the Green Loan Principles published by the Loan Market Association. Operators use them to fund campus construction at lower margins or with wider investor bases than conventional loans. In March 2026 AirTrunk closed a US$1.24 billion (JPY191.6 billion) green loan for its TOK1 campus in Inzai, Japan, described as the largest data center financing in the country. Lenders typically require use-of-proceeds reporting and independent verification of criteria such as PUE targets or renewable power share. It differs from a sustainability-linked loan, where the pricing depends on meeting performance targets but proceeds can be used for any purpose.