PDG Completes First Phase of 150MW Data Centre Campus in Southern Malaysia

Princeton Digital Group has delivered the 52-megawatt initial phase of its 150MW JH1 data centre campus, coming less than 14 months after it acquired the development site in Malaysia’s southern Johor state.

The AI-ready project will generate renewable energy through the installation of rooftop solar panels, Warburg Pincus-backed PDG said Wednesday in a release. In May the firm secured a $280 million green loan for JH1, hailing it as a major milestone towards minimising resource consumption and emissions by the region’s artificial intelligence infrastructure.

Also this week, PDG signed an energy supply agreement for the entire capacity of the JH1 campus with state electric company TNB. The deal followed the energisation of the first phase by TNB under Malaysia’s Green Lane Pathway initiative to fast-track power to projects.

“We are highly appreciative of the steadfast support of the Malaysia government, whose proactive policies have played a pivotal role in creating a supportive environment for the industry,” said Rangu Salgame, the co-founder, chairman and CEO of Singapore-based PDG. “JH1 is further testament to our unmatched track record of execution as a leading pan-Asian data centre operator.”

Johor Heat

In May of last year, PDG struck a deal to buy 31 acres (12.5 hectares) from state-owned JLand Group to develop the hyperscale campus at Sedenak Tech Park in Kulai, Johor. The firm estimated the first phase’s investment cost at MYR 2 billion (then $450 million).

The project marked PDG’s entry into Malaysia, the platform’s sixth country after Johor’s next-door neighbour Singapore, China, Indonesia, India and Japan. Upon completion, JH1 is expected to be one of the largest server-hosting campuses in Southeast Asia.

Increased activity in Johor has helped push Malaysia to the top of the list of APAC’s fastest-growing data centre markets, according to a report by Cushman & Wakefield.

Last month, state-backed telcos Singtel and Telekom Malaysia revealed a joint venture to develop Malaysian data centres, starting with a Johor campus with a potential capacity of 200MW.

Also in June, a data centre unit of tech giant Microsoft agreed to acquire a development site at EcoWorld’s Eco Business Park VI in Johor’s Kulai for MYR 402.3 million ($85.5 million) in cash.

Projects Advance

PDG’s latest win comes three months after the Singaporean firm and Australian builder Lendlease completed construction of the 48MW first phase of their TY1 data centre in Tokyo.

Scheduled to enter service in the fourth quarter of 2024, the facility is being constructed on a built-to-suit basis for PDG, which will invest $1 billion across the life of the project. The gross development value of the campus will exceed A$750 million ($489 million) for Sydney-based Lendlease.

Founded in 2017 and backed by global investors Warburg Pincus, Mubadala Investment Company and the Ontario Teachers’ Pension Plan, PDG has 21 data centre projects across 15 cities.