Princeton Digital Group Acquired XL Axiata “Data Center” Business
Princeton Digital Group (PDG), a Singapore-based internet infrastructure developer and operator, has acquired 70% of XL Axiata data center business shares and to develop a joint venture named Princeton Digital Group Data Center
PDG also has an investment commitment of $100 million (more than Rp1.4 trillion) for capital growth.
The joint venture intends to be a data center operator to handle hyperscalers companies, domestic unicorns, corporates, and telco. However, XL Axiata has five data center located in all over Indonesia.
PDG’s Chairman & CEO, Rangu Salgame explained the acquisition is supposed to extend the current data center capacity. There will be one more hyperscale data center by the end of the year, For the company, all series are to tighten the high-quality competition in the global internet infrastructure.
“With the follow-on investment, the joint venture should lead the market in Indonesia and one of the biggest data center operator in Southeast Asia,” Salgame stated in the release.
XL Axiata’s President Director & CEO, Dian Siswarini added, the extensive skills and experiences of PDG will make this new entity the main option for the multinational and big scale digital service providers aiming for operational expansion in Indonesia and Asia.
Data center is the main support behind Indonesia’s digital economy growth, which is predicted to dominate Southeast Asia’s region by 2025. Public cloud service provider such as Alibaba Cloud, Amazone Web Services, and Google Cloud has built some strategic hub in the Indonesian market.
Alibaba already has two data center here. While Google already has cloud region acted similar to the data center. Previously, the government requires the cloud service provider and server to have its own data center, particularly to keep storage with high risks – in case it contains Indonesian user’s identity.
In Southeast Asia, the data center market is predicted to have significant growth, increased by two times in the next four years. In Technavio, this area will grow stable at 14% Compound Annual Growth Rate (CAGR) between 2017 to 2021.
Original article is in Indonesian, translated by Kristin Siagian
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