Princeton Digital Group (PDG) has acquired a 70 per cent stake in XL Axiata’s data centre portfolio in Indonesia, amid increased in-country digital spending.
Operating as the second largest national telecommunications provider, XL Axiata owns five data centres across Indonesia.
The joint venture - named Princeton Digital Group Data Centres - will enable Singapore-based PDG to establish a “strategic presence” in Indonesia, which is poised to become the largest digital economy in Southeast Asia by 2025.
The new entity will be a carrier-neutral data centre operator with the ability to "scale significantly" to serve hyper-scalers, domestic unicorns, enterprises and telcos.
“We are delighted to partner with XL Axiata in this venture,” said Rangu Salgame, chairman and CEO of PDG. “PDG’s plans including expanding capacity in the existing data centres as well as building one large hyper-scale data centre later this year.
“With further investments in the coming years, we see this JV becoming the undisputed market leader in Indonesia and one of the largest operators in Southeast Asia.”
The move comes as public cloud giants such as Alibaba Cloud, Amazon Web Services and Google Cloud build strategic hubs in the market. According to Salgame, data centres are the “backbone of this phenomenal growth”.
Specifically within Southeast Asia, Salgame said that the data centre market is poised for “major advances” and is expected to more than double its value in the next four years.
“For PDG, the goal is clear - we are leveraging our unmatched experience in scaling global internet infrastructure to build a pan-Asian multibillion-dollar digital infrastructure portfolio,” Salgame added. “Today’s announcement is a significant step in that direction.”
PDG is an investor, developer and operator of internet infrastructure, partnering with global hyper-scalers and enterprises across China, Singapore, India and Indonesia.
“We are thrilled to enter into this partnership with PDG,” added Dian Siswarini, president director and CEO of XL Axiata.
“Our depth of local knowledge and strong experience operating in the Indonesian telecommunications industry, combined with the extensive expertise and experience of the PDG team in the global telecom and technology sphere make Princeton Digital Group Data Centres a compelling partner of choice to hyper-scale digital services providers and multinational enterprises who are rapidly expanding their operations in Indonesia and across the region.”