OTPP leads $360m round for Asia data center business

Warburg Pincus, which invested $300 million in the company in 2017 when it operated out of New York under the name Princeton Growth Ventures, also contributed. Since this time, PDG has developed a portfolio of 18 data centers across Asia.

PDG focuses on serving internet and cloud companies with quickly rising demand for computing capacity, also known as the hyperscale market. The company pumped $500 million into this space last year with a string of acquisitions, including XL Axiata’s data center portfolio in Indonesia, a suite of development-stage projects in China, and a 100% stake in a Singaporean data center to be used by IO Data Centers, a major US-based operator. It has also established a footprint in India.

PDG is positioned as an on-demand, carrier-neutral service provider with advanced power and cooling technology, physical security, and round-the-clock technical support. It has also aimed to differentiate itself as a global rather than regional player. There are plans to expand beyond Asia where demand for cloud, mobile and streaming support is outstripping supply, including the Middle East and Latin America.

“We see data centers as a compelling investment opportunity given their essential role in the rapid digitalization and growth of data occurring in Asia and around the world. Ben Chan, regional managing director for Asia-Pacific at OTTP, said in a statement.  “We have been impressed by PDG’s high-quality management team, unique strategy, and track record of success and look forward to leveraging our experience to help the company continue to scale across Asia.”

Asia is expected to become the largest data center market globally in the near term, with developing economies driving most of the growth. China has proven the epicenter of this theme, prompting concerns around valuations amid a flood of buy-and-build plays from the likes of GIC Private and Bain Capital, the latter of which helped hyperscale developer Chindata Group Holdings raise $540 million in a US IPO.

Previous activity from Warburg Pincus includes a partnership with 21Vianet to develop enough data centers in China to host several million servers.

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• Topics
• Southeast Asia
• Infrastructure
• Technology
• Real estate
• Expansion
• Singapore
• Asia
• Warburg Pincus Asia
• data center