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Princeton Digital Group plans to strengthen its position in the Asian market
Princeton Digital has allocated US$1 billion to construct a new data center. The facility will be located on an island in Indonesia near Singapore.
According to the company, the decision to build new data centers in Southeast Asia is due to the region’s good demand for such infrastructure. Countries here show active growth of the digital economy, which, in turn, requires the introduction of many tools to ensure the smooth operation of all processes.
The new data center will allow Asian companies to scale their business and increase the efficiency of operations in the region without looking for other digital solution providers. At the same time, Princeton notes the critical role of Singapore in innovation infrastructure development. The company is interested in attracting more investment in its home country. Princeton explained that the US$1 billion investment would cover Singapore’s digital needs over the next 3-4 years. At the same time, the company is expanding its operations outside of the region. In late 2022, the service provider announced the construction of its data center in India with a US$300 million investment. The new facility will allow Princeton to strengthen its position in one of the world’s largest markets.
Princeton Digital strategy
In 2021, the company invested $1 billion to open a data center in Japan. The hyper-scale facility is located in Saitama City, near Tokyo, and occupies an area of 33 thousand square meters. The campus was built in two phases, each with a capacity of 48.5 MW. Princeton’s goal is to locate data centers in Asia with a total capacity of 600 MW. Currently, the operator has facilities in Singapore, Indonesia, India, Japan, and China. The company is paying particular attention to the Japanese market. According to Structure Research, the local digital infrastructure sector will reach $1.6 billion in annual revenues by 2025. This makes the country promising for expanding offerings from global data center service providers.
Princeton Digital has been in the market since 2017. During that period, it has become one of the fastest-growing operators in Asia. In February 2023, the company announced plans to generate electricity from geothermal sources. In this way, Princeton wants to contribute to solving the climate problem and improving the eco-security of its data centers. However, experts believe that acquiring the REC certificate does not guarantee using renewable energy to cover 100% of the centers’ needs. Buying ready-to-use green energy – PPA is much more effective, as many IT corporations do.