SINGAPORE – Asian data centre operator Princeton Digital Group is seeking a syndicated loan of up to US$1.2 billion (S$1.54 billion) to fund its Malaysia buildout, according to a source familiar with the matter, as the debt binge to finance artificial intelligence infrastructure continues.
HSBC Holdings Singapore branch, Maybank Investment Bank, OCBC Bank (Malaysia), Standard Chartered Bank (Singapore), and United Overseas Bank are the mandated lead arrangers and bookrunners for the three-year loan deal, said the source, asking not to be identified discussing private information.
Proceeds from the loan to be taken by the company’s subsidiary, Princeton Digital Group Labuan Alpha, will be used to fund a 198.8MW data centre campus project in Johor, Malaysia and to refinance existing debt, the source said.
Standard Chartered declined to comment. Representatives for Princeton Digital Group, HSBC, Maybank, OCBC Malaysia and UOB didn’t immediately respond to requests for comment.
Data centre companies across the world have been taking on debt as they seek to raise capital to meet growing AI demand.
Moody’s Ratings expects at least US$3 trillion to flow into data centre-related investments over the next five years, with much of the spending financed through debt.
But there are signs global investors are starting to push back against what they see are frothy AI valuations as evidenced by the collapse of Nvidia-backed data centre operator Firmus Grid’s initial public offering earlier in October.
Data centre firm AirTrunk, which counts Blackstone as a key investor, was reported to delay its planned IPO of a real estate investment trust in Singapore until 2027 as higher interest rates and market volatility temper investor demand.
Headquartered in Singapore, Princeton Digital’s top shareholder is Warburg Pincus and other investors include Stonepeak Partners, Abu Dhabi sovereign fund Mubadala Investment and Ontario Teachers’ Pension Plan Board.
The firm, founded in 2018, operates more than 1.8GW of data centre capacity across Asia including China, Japan, South Korea, India, Singapore, Malaysia and Indonesia, according to its website.
PDG has been on a borrowing spree as it seeks to expand across Asia.
In May, the firm said it raised around US$856 million for its data centre buildout in Indonesia. Earlier in 2026, the company said it was targeting to raise US$5 billion in debt to support regional expansion plans. BLOOMBERG
