PDG plans to invest $1 billion in India expansion amid AI data center boom

3 minutes of reading Last update: Sep 19, 2024 | 16:58 IST

Princeton Digital Group (PDG), a leading data center provider in Asia, has announced an investment of $1 billion to expand its data centers in India, according to a company statement.

The investment will increase PDG’s capacity to 230 megawatts (MW) across two major hubs, Mumbai and Chennai. The move is part of the company’s larger $5 billion strategy to strengthen its presence in Asia.

The Singapore-based internet infrastructure developer will triple the capacity of its flagship Mumbai campus, MU1, making it one of the largest operational data centre campuses in the city. The expansion includes the construction of three additional buildings, which will increase MU1’s capacity to 150 MW, with the first phase of the 100 MW expansion expected to be completed by 2026. The expanded facility will cover 15 acres of land.

In addition to strengthening its presence in Mumbai, PDG is entering Chennai, one of India’s key cloud infrastructure hubs. The company’s new CH1 campus in North Chennai will have a capacity of 72 MW. The AI-ready hyperscale facility will cover 9.3 acres and is designed to provide future scalability, supporting some of the world’s largest hyperscalers.

“AI has completely transformed the data center landscape over the past 18 months. First, we saw an explosion of demand in North America, followed by an initial wave of AI-driven demand in Asia,” said Rangu Salgame, president, CEO and co-founder of PDG. “India is well-positioned to become a global AI leader, and we are committed to playing a major role in achieving that goal.”

Both the MU1 and CH1 campuses have been designed with high-density deployments and advanced cooling technologies to meet the requirements of AI-driven infrastructure. PDG’s focus on sustainability remains at the forefront, with the company aiming to power around 50 percent of MU1 with renewable energy. Similar renewable energy sourcing will be implemented at both the expanded Mumbai campus and the new CH1 location, a press release said.

“Mumbai and Chennai are the premier cloud infrastructure hubs in India due to the combination of proximity to the submarine cable, high-quality power supply, availability of renewable energy and robust infrastructure development,” said Vipin Shirsat, Managing Director, PDG India. “With the advent of AI in India, both locations are well-positioned to become leading AI infrastructure hubs as well.”

Warburg Pincus made its first investment in PDG in 2017, committing $300 million. The investment was part of the private equity firm’s strategy to build PDG into a key player in the data center space in Asia, with a focus on markets such as India, Indonesia and China.

PDG’s $5 billion investment program is aimed at expanding the company’s capabilities in Asia, with projects in India, Indonesia, and Malaysia, making it a key player in AI-ready infrastructure development in the region.

First published: Sep 19, 2024 | 16:52 IST