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Princeton Digital secures £220.9m green loan for data centre in Malaysia

Written by Thu 16 May 2024

Asian data centre infrastructure company, Princeton Digital Group, has secured a substantial £220.9 million ($280 million) green loan for its data centre campus in Johor, Malaysia.

Channel Asia reported the loan will be provided by Maybank and UOB Malaysia. This loan is reportedly PDG’s first green loan, in accordance with the company’s green finance framework.

The JH1 data centre, first announced last year, will provide 150 MW capacity to the end users in the region. The loan will provide the resources needed for the first phase of the buildout, which is expected to be operational in June of this year. The total project cost is estimated at £1.1 billion ($1.5 billion).

The JH1 data centre is a flagship campus on a 700-acre site. The data centre will provide 150MW capacity and best-in-class digital infrastructure.

“JH1 and this financing by top banks are evidence of how PDG is solving for sustainability while building at scale for artificial intelligence (AI). With our unmatched track record of execution, this further cements our position as a leading pan-Asian data centre operator,” said Rangu Salame, CEO, Chairman and Co-founder of PDG.

According to the company website, Malaysia is one of the fastest-growing colocation markets in Southeast Asia, with enterprise cloud adoption being in the early stages but rapidly growing. The company added there are roughly 33 million internet users in Malaysia and the internet penetration is about 96.8%.

The Digital economy was identified as one of the Key Economic Growth Areas to realise the Shared Prosperity Vision (SPV) 2030, reportedly leading Malaysia toward developing sustainably with fair economic distribution and equitable and inclusive growth.

The data centre market in Malaysia is expected to more than double by 2029, growing from £1.4 billion ($1.81 billion) in 2023 to £3.1 billion ($3.97 billion) at that time. The expected CAGR from 2023-2029 is 13.92%.

Earlier this year, the country announced a strategic partnership with the Ministry of Investment of the United Arab Emirates (UAE) to accelerate the development of Malaysian data centres.

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Written by Thu 16 May 2024

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