Singapore-based Princeton Digital Group (PDG), a Warburg Pincus-backed investor, developer and operator of internet infrastructure, announced that it has acquired assets and land for data center development in China and Singapore, as part of a US$500 million investment to fuel PDG’s expansion across Asia.
This announcement follows its recent acquisition of a majority stake in XL Axiata’s data center portfolio in Indonesia. PDG is now the only company that owns data centers in China, Singapore, and Indonesia – three of the fastest-growing digital economies.
In China, PDG has started construction of a 40MW data center campus in Shanghai, with the first phase to be completed in H1 2020. PDG has also acquired land for large scale data center development in Nanjing, Nantong and Wuxi – strategic locations of growth in China. In Singapore, PDG has acquired 100% stake in a data center business that used to be part of the erstwhile IO Data Centers, a major US operator.
“Our Shanghai project will be one of the largest data center campuses in the region and marks an exciting phase for PDG in China as we consolidate our assets and invest further for growth. In Singapore, the acquisition gives our customers a compelling solution to their scalability needs in the region’s digital hub. These transactions represent a significant step towards building a pan-Asian multibillion-dollar digital infrastructure portfolio,” said Rangu Salgame, Chairman and CEO, PDG.
Asia Pacific is poised to become the biggest data center market by 2020. According to JLL, Asia Pacific revenue for shared or colocation data centers is expected to overtake the U.S., rising to 40% of global share by 2020. According to Technavio, China’s data center market is expected to grow at a CAGR of close to 12% during 2018 to 2022 while Southeast Asia’s data center market is set to grow at a CAGR of around 14% during the period 2017 to 2021. The demand in data centers is driven by a few factors – Asia features some of the world’s biggest and fastest-growing digital economies, and by 2022, will account for 56% of global mobile traffic, the largest share of traffic by any region by a substantial margin (Cisco). The impending arrival of 5G will further spur demand in data centers.