Singapore-based Princeton Digital Group (PDG) has reached a definitive agreement to acquire a 70 percent stake in the data center portfolio of Indonesian telecommunications operator XL Axiata.

The second largest mobile communication company in Indonesia, XL Axiata currently operates five data centers located primarily in Sumatra and Java.

The facilities are in Pekanbaru, Cibitung, Surabaya, Bintaro and Bandung.

Putting the JV in Java

The joint venture will see the establishment of Princeton Digital Group Data Centres, which will be positioned as a carrier-neutral data center operator to serve a broad array of customers from hyperscalers, enterprises and telecommunication operators.

PDG will also commit US$100 million in growth capital to expand the capacity of existing facilities. In addition, a new “large” hyperscale data center in Indonesia is slated for construction later this year, though no details were given.

“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,” Rangu Salgame, the chairman and CEO of PDG, said.

The joint venture with XL Axiata represents a significant first step of the company’s strategy to build a digital infrastructure portfolio across Asia.

PDG is backed by private equity investment firm Warburg Pincus, and looks set to grow aggressively. In Singapore, PDG hired Asher Ling, formerly the COO of Kingsland Data Centre, as its managing director in the city state. More recently, it hired Vipin Shirsat, formerly a VP at STT GDC, as MD and GM of Indian operations.

“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… make Princeton Digital Group Data Centres a compelling partner of choice,” Dian Siswarini, the president, director and CEO of XL Axiata, said.