PDG Targets Construction Of 100 MW Data Center Campus In Japan

The collocation market in Japan has attracted PDG's interest to invest in new campuses. (photo: PDG)

JAKARTA - Princeton Digital Group (PDG), Asia's leading data center provider, announced their plans to build one of the largest hyperscale facilities in Tokyo, in the near future. The Singapore-based IT company will spend an investment of 1 billion US dollars (around 14.5 billion rupiah).

PDG sees Japan as the fifth market the company wants to enter since the company was founded 4 years ago. Through this investment, PDG is taking a historic step in their plan to build a 600 Megawatt portfolio across the Asian region.

The new campus is in the city of Saitama and will have a critical IT capacity of nearly 100 megawatts (MW), in two phases, 48.5 MW each.

Saitama City is one of the major commercial centers in the Tokyo area. Located 30 km north of central Tokyo, the PDG Saitama campus has a total land area of 33,047 m². The facility is designed to serve the leading hyperscalers in Japan, which is one of the most dynamic cloud markets in the world.

PDG already owns the land and resources for construction which will begin later this year. The facility will be built to the latest hyperscale designs and standards, with unmatched scalability, connectivity and reliability.

“The Asia Pacific region will be the largest data center market in the world, and this announcement underscores our vision to be the market leader in the region,” said Rangu Salgame, Chairman and CEO of Princeton Digital Group.

“Over the past four years, through our three-pronged strategy of acquisition, carve-out and greenfield development, we have built a strong data center portfolio across key Asian markets such as China, Singapore, Indonesia and India.

PDG has become the partner of choice for hyperscalers in various countries. Their arrival to Japan and especially Tokyo demonstrates their ability to enter new markets that are important to customers.

Tokyo is the largest data center market in Asia besides China and is still in the early stages of growth. Especially in terms of the presence and expansion of global hyperscaler companies. According to Structure Research, the hyperscale collocation market in Greater Tokyo is expected to reach a value of USD 1.6 billion (approximately IDR 23.2 trillion) by 2025, and grow at a CAGR of 25.1% between 2021 and 2025.

"The Tokyo market is projected to see increased demand for hyperscale data center development going forward. The increase comes from what we believe is a convergence of several important factors: the sizable and serviceable Japanese market," said Jabez Tan, Head of Research at Structure Research. .

Japan, being the 3rd largest country in the world by GDP, the absence of a domestic hyperscale cloud platform is an ideal competitive landscape for US and Chinese hyperscale cloud providers. "Japan is becoming a major connectivity aggregation and distribution hub for submarine cables coming from the US West Coast to access other Asia Pacific regions," said Jabez.