PDG to acquire 70% stake in XL Axiata data centre portfolio in Indonesia
By Digital News Asia July 5, 2019
- XL Axiata owns five high quality data centres across Indonesia
- The new entity will be a carrier-neutral data centre operator
SINGAPORE-based Princeton Digital Group (PDG), a Warburg Pincus-backed investor, developer and operator of internet infrastructure, announced that it has reached a definitive agreement to acquire a 70% stake in XL Axiata’s data centre portfolio.
XL Axiata, Indonesia’s second largest telecommunications company, owns five high quality data centres across Indonesia.
The joint venture, Princeton Digital Group Data Centres, enables 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 hyperscalers, domestic unicorns, enterprises, and telcos.
“We are delighted to partner with XL Axiata in this venture. PDG’s plans including expanding capacity in the existing data centres as well as building one large hyperscale 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 South East Asia. For PDG, the goal is clear – we are leveraging on our unmatched experience in scaling global internet infrastructure to build a pan-Asian multibillion-dollar digital infrastructure portfolio. Today’s announcement is a significant step in that direction,” said Princeton Digital Group chairman and chief executive officer Rangu Salgame.
“We are thrilled to enter into this partnership with PDG. 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,” said XL Axiata president director and chief executive officer Dian Siswarini.
Indonesia's digital economy is set to dominate Southeast Asia by 2025 as its market value triples to US$100 billion from US$27 billion in 2018 (Google-Temasek).
Global public cloud service providers such as Alibaba Cloud, Amazon Web Services and Google Cloud are already building strategic hubs in the market. Data centres are the backbone of this growth.
Across Southeast Asia, the data centre market is poised for major advances and is expected to more than double its value in the next four years.
According to Technavio, the data centre market in the region will grow steadily at a compound annual growth rate (CAGR) of around 14% during the period 2017 to 20213.
Delta Partners acted as financial advisor to PDG on this transaction.