14 October 2026, Singapore-based data centre operator Princeton Digital Group Ltd is seeking a syndicated loan of up to US$1.2 billion (RM4.9 billion) to finance its expansion in Malaysia, according to Bloomberg.
The three-year loan will be arranged by HSBC’s Singapore branch, Maybank Investment Bank Bhd, OCBC Bank (Malaysia) Bhd, Standard Chartered Bank (Singapore) Ltd and United Overseas Bank Ltd, which are acting as mandated lead arrangers and bookrunners.
The funds will be borrowed through the company’s subsidiary, Princeton Digital Group Labuan Alpha Ltd, to finance a 198.8-megawatt data centre campus in Johor and refinance existing debt.
The financing comes as data centre operators worldwide increasingly turn to borrowing to fund infrastructure expansion amid rising demand for artificial intelligence (AI) computing capacity.
Moody’s Ratings expects at least US$3 trillion to be invested in data centre-related projects over the next five years, with a significant portion of the spending financed through debt.
However, concerns over elevated AI valuations and market volatility are beginning to weigh on investor appetite. Bloomberg reported that Nvidia-backed data centre operator Firmus Grid Ltd’s initial public offering collapsed last week, while AirTrunk has reportedly delayed its planned Singapore real estate investment trust listing until next year.
Founded in 2018 and headquartered in Singapore, Princeton Digital Group counts Warburg Pincus as its largest shareholder. Other investors include Stonepeak Partners, Mubadala Investment Company and the Ontario Teachers’ Pension Plan Board.
The company operates more than 1.8 gigawatts of data centre capacity across Asia, including Malaysia, Singapore, Indonesia, China, Japan, South Korea and India.
Princeton Digital Group has also been raising funds for its regional expansion. In May, the company said it had secured approximately US$856 million for data centre development in Indonesia. Earlier this year, it reportedly targeted US$5 billion in debt financing to support its broader expansion plans.
-TheEdge
