(Bloomberg) — Princeton Digital Group secured a $280 million green loan to help finance a $1.5 billion data center it is building in southern Malaysia, a first for the data center operator. Asian infrastructure which aims to make this complex operational by June.
Most read on Bloomberg
The Warburg Pincus-backed company, which builds and operates server facilities in the region, has secured funding from Maybank, Standard Chartered Plc and United Overseas Bank Ltd. Princeton Digital said the deal marked its first so-called green loan, a form of debt. targeted on environmentally friendly projects.
From Microsoft Corp. At KKR & Co., tech companies and financiers are funding data centers across Asia to support an accelerating boom in AI development and services. They are needed to meet an estimated 25% annual increase in demand for the infrastructure that underpins cloud services and generative AI. This month, Microsoft committed to investing $2.2 billion in Malaysia.
Read more: KKR and Warburg launch into Asian data center AI and cloud boom
Singapore-based Princeton Digital announced plans to borrow $1 billion to finance several projects. Founded in 2017, the company develops and operates facilities in China, Singapore, India, Indonesia, Malaysia and Japan. Warburg Pincus invested and helped create the company.
In 2022, Princeton Digital raised more than $500 million in a funding round led by Abu Dhabi sovereign investor Mubadala Investment Co., joined by the University Teachers’ Pension Scheme Board. Ontario. And in May 2023, it agreed to buy land in Malaysia’s southern state of Johor to build this 150-megawatt hyperscale data center, the first in the country.
The Johor Bahru region, connected by a causeway to Singapore, is emerging as one of the growing AI data center hotspots in Asia. Last year, Nvidia Corp. has partnered with local utility YTL Power International Bhd. to build a $4.3 billion AI data center park in the region.
Most read from Bloomberg Businessweek
©2024 Bloomberg LP
