Princeton Digital Group to invest $1B in Japanese data centre

Singapore-based data centre provider Princeton Digital Group has announced it will build a 100MW, hyperscale data centre in Tokyo, Japan. The company has committed to spend $1bn on the facility.

The new data centre will be located in Saitama City, one of the main commercial centres of the city, located 30km north of the city centre. PDG has purchased the 33,047 sq m campus and secured power for the project, and expects to break ground later this year. This will bring the company’s total number of owned and operated data centres to 19, across 13 cities in the Asia Pacific region.

Rangu Salame, Chairman and CEO of Princeton Digital Group, noted that construction of a new flagship data centre in Tokyo is an important investment in the company’s goal – to be a market leader in the Asia Pacific region. “Over the last four years, through our unique three-pronged strategy of acquisitions, carve-outs and greenfield development, we’ve built a strong portfolio of data centres across key Asian markets such as China, Singapore, Indonesia and India.”

“Our entry into Japan and, in particular, Tokyo demonstrates our continued ability to enter new markets that matter to our customers.”

While Japan, especially Tokyo, are fairly mature markets for data centre services, there is still room for growth in hyperscale services. The hyperscale market specifically is expected to grow at a CAGR of 25.1% over the next few years. This is due in part to Japan’s high GDP, and its position as a connectivity hub for submarine cables entering the APAC region.

Financial analysts have projected that Princeton Digital Group is looking to begin a new round of fundraising, with a possible target valuation of $2bn. No details are currently available, as the company is engaged in preliminary talks only; but sources have said that a $400 million fundraising effort could be tied to a potential initial public offering later this year.