The new data centre facility will take PDG’s capacity to 450 MW. PDG, which was formed in 2017, already has 18 data-centres across 4 countries – China, Singapore, Indonesia and India
To build a data centre facility in Japan, marking the company’s foray into its fifth market, Singapore-based Princeton Digital Group (PDG) backed by private equity firm Warburg Pincus, said on Tuesday it was investing $1 billion in Japan.
The new data centre campus, having close to 100 megawatts (MW) of capacity across two phases of 48.5 MW each, will be located at Saitama City, a commercial centre in the Greater Tokyo area.
Chief Executive Rangu Salgame told Reuters that the Japan campus will be fully operational by the end of 2023 or early 2024.
The new data centre facility will take PDG’s capacity to 450 MW. PDG, which was formed in 2017, already has 18 data-centres across 4 countries – China, Singapore, Indonesia and India.
The company is looking at deepening its presence in existing markets, and is considering new ones such as South Korea and other Southeast Asian countries, Salgame said. The company hopes to reach a 600 MW capacity portfolio soon, he added.
As part of a $1 billion expansion plan in China, the company secured $230 million debt refinancing in April from China Merchants Bank. Last year, it raised $360 million in a funding led by Ontario Teachers’ Pension Plan Board.
The Japan data centre project will be funded by a mix of equity and debt, Salgame said.
“We have a lot of capital to draw on. But as a group we are always talking to investors in the marketplace”, he added.
As more companies and people go online, driving up the need for hosting, storage and cloud computing facilities, demand for data centre has accelerated on the back of the COVID-19 pandemic.