Stonepeak invests $1.3 bn in Data Centre firm Princeton Digital to back Asia expansion

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Data centre operator Princeton Digital Group (PDG) has secured a $1.3 billion preferred equity investment from US-based infrastructure investor Stonepeak. PDG aims to ramp up its presence across Asia Pacific through both greenfield projects and acquisitions, the company said in a release.

The latest funding brings PDG’s total capital raised this year to $2.5 billion, following a $1.2 billion debt financing it announced earlier. The company operates more than 1.1 gigawatts (GW) of capacity across six countries and counts hyperscalers as its primary customers.

Existing investors include Warburg Pincus, Ontario Teachers’ Pension Plan, and Mubadala. Warburg will remain PDG’s largest shareholder.

The investment is a bet by Stonepeak on the growing demand for digital infrastructure, particularly data centres supporting artificial intelligence (AI) and cloud workloads. “PDG is well-positioned to meet hyperscaler demand in APAC’s key markets,” Andrew Thomas, senior managing director at Stonepeak, was quoted as saying in the release.

Goldman Sachs and J.P. Morgan have advised PDG, while Barclays advised Stonepeak. Meanwhile, Latham & Watkins and Sidley Austin provided legal counsel.

Founded in Singapore, PDG has operations in India, Indonesia, Japan, China, Malaysia, and Singapore, and is among a handful of operators aggressively expanding capacity to meet the rising compute needs driven by generative AI.

The company did not disclose the valuation at which the Stonepeak investment was made.