Singapore-headquartered Princeton Digital Group is seeking a syndicated loan of up to US$1.2 billion to finance a 198.8 MW data-centre campus in Johor and refinance existing debt, according to people familiar with the proposed financing. The transaction would add to a growing pipeline of debt-funded AI infrastructure across Southeast Asia.
The borrowing would be undertaken through Princeton Digital Group Labuan Alpha, a subsidiary of the regional data-centre operator. HSBC’s Singapore branch, Maybank, OCBC Bank Malaysia, Standard Chartered Bank Singapore and UOB have reportedly been appointed as mandated lead arrangers and bookrunners for the three-year facility.
The financing has not been formally confirmed by the company or participating banks. The final amount, lender group and terms may therefore change before the transaction closes. Proceeds are expected to support construction of the Johor facility while replacing part of the subsidiary’s existing borrowings.
Johor has developed into a major regional data-centre location because of its proximity and network connectivity to Singapore, as well as its greater availability of land and power. The arrangement allows operators to serve Singapore-linked and Southeast Asian workloads while placing large physical campuses in Malaysia. This model has become increasingly relevant as Singapore balances demand for cloud and AI capacity against domestic land, electricity and sustainability constraints.
Princeton Digital operates more than 1.8 GW of capacity across markets including Singapore, Malaysia, India, Indonesia, China, Japan and South Korea. Warburg Pincus is its largest shareholder, while other investors include Stonepeak, Mubadala Investment Company and the Ontario Teachers’ Pension Plan.
The company raised approximately US$856 million earlier in 2026 for data-centre development in Indonesia and has stated an objective of securing as much as US$5 billion in debt for its wider Asian expansion. The latest facility would move that programme forward while concentrating additional capacity in the Singapore–Johor infrastructure corridor.
Debt financing has become an important component of AI infrastructure development because hyperscale campuses require extensive capital before customer revenue begins. Land, grid connections, substations, cooling systems, networking equipment and construction must often be funded years before a campus reaches full utilisation.
The financing also arrives as lenders and investors apply greater scrutiny to data-centre valuations, utilisation assumptions and customer concentration. PDG’s proposed facility remains a developing
transaction and should be treated as such until financing documents are executed.
