PDG secures USD $95 million Green Loan for Singapore data centre

Princeton Digital Group (PDG) has secured a USD $95 million Green Loan for its SG1 data centre located in the heart of Singapore. This marks PDG's second green loan acquisition in 2024, contributing to a total of USD $375 million in Green Loans for the year.

Singapore, recognised as the central hub of Southeast Asia, hosts one of the largest data centre markets in the region and is ranked among the top global colocation markets. PDG's SG1 data centre is an integral component of the company's SG+ strategy. This ambitious plan encompasses over 500 megawatts spread across locations in Singapore, Johor, and Batam, providing customers with the ability to scale their operations while capitalising on the unique advantages that have made Singapore a leading regional hub.

The loan has been facilitated by two major global financial institutions: Sumitomo Mitsui Banking Corporation (SMBC) and Société Générale. SMBC has assumed multiple roles in this transaction, acting as the sole Green Loan Coordinator, Agent, and Security Agent, as well as the Account Bank. The secured funds will be utilised to refinance SG1's existing loan and will also be directed towards upgrading and expanding the data centre. Additionally, the loan will support PDG's ongoing expansion efforts across the region.

Rangu Salgame, Chairman, CEO, and Co-Founder of PDG, expressed his sentiments regarding this development: "In securing our second successful green financing, we continue to demonstrate how we have incorporated sustainability into the heart of our growth strategy. This significant milestone reaffirms PDG's commitment to building and operating data centre campuses that are AI-ready and combine cutting-edge technology and resilience with a primary focus on sustainability. The loan enables us to operate green and energy-efficient data centres to reduce the environmental impact of data centre infrastructure in Singapore."

The USD $95 million Green Loan aligns with PDG's green financing framework and international Green Loan Principles, stipulating that the funds raised must be applied toward data centres that meet the eligibility criteria under the Green Buildings category.

PDG continues to make significant strides in integrating sustainability into its business model, reflecting a broader industry trend towards greener, more environmentally friendly operations. By securing substantial green loans, the company not only enhances its financial stability but also underscores its commitment to reducing the environmental impact of its operations. This strategic approach is likely to position PDG favourably in the competitive data centre market, particularly as sustainability becomes an increasingly critical criterion for clients and investors alike.

The SG1 data centre, already pivotal to PDG's offerings, stands to benefit significantly from the planned enhancements and expansions facilitated by the green financing. These upgrades are expected to not only improve the centre's operational efficiency but also bolster its capacity to meet the growing demands of hyperscalers and enterprises within the region.