Princeton Digital Group, a Warburg Pincus-backed data centre operator, is considering a private fundraising round to raise as much as US$1 billion , according to people familiar with the matter.

The Singapore-based company is working with a financial adviser on a potential deal that could involve debt and equity, said the people, asking not to be named as the process is private. Proceeds will likely be used to refinance debt and expand its business in the region, the people said.

Deliberations are at an early stage and the firm could still decide not to pursue a deal, the people said. Representatives for Princeton didn’t immediately respond to requests seeking comment.

Princeton Digital plans to double the capacity of its data centres in three years, to meet surging demand from global artificial intelligence (AI) developers and to add more than 300 employees in markets including Japan, Malaysia, Singapore and India by the end of 2025, as AI propels its growth, chairman and chief executive officer Rangu Salgame said in an interview with Bloomberg in July. The company said in a statement last year that it was looking to raise US$1 billion in debt across multiple projects, as it seeks to expand its business.

Global investors have been eyeing digital infrastructure assets, as they seek to tap into increasing demand for technology, while looking for stable returns. Blackstone Inc has agreed to acquire Australian data-centre operator AirTrunk in a deal valuing the firm at A$24 billion (US$16.1 billion), including debt and capital expenditure for committed projects. DigitalBridge Group Inc is considering options including a sale of EdgePoint Infrastructure, Bloomberg News has reported. In June, a consortium of KKR & Co Inc and Singapore Telecommunications Ltd agreed to invest S$1.75 billion (US$1.3 billion) for a minority stake in ST Telemedia Global Data Centres.

Princeton Digital, established in 2017, invests in, develops and operates data centre infrastructure in China, Singapore, India, Indonesia, Malaysia and Japan, according to its website. The company operates more than 20 data centres in six countries. Warburg Pincus invested in and helped set up the company, along with Princeton Digital’s founder Salgame.

In 2022, Princeton Digital raised more than US$500 million in a funding round led by Abu Dhabi sovereign fund Mubadala Investment Co PJSC, which contributed more than US$350 million, according to a statement. The data centre operator’s existing shareholders Warburg Pincus and Ontario Teachers’ Pension Plan Board also participated. The proceeds were earmarked to strengthen the firm’s presence in Japan, India, Singapore and China, and to accelerate its expansion into other parts of Asia.

  - Bloomberg