Princeton Digital Group Seeks $1.2 Billion Loan for Malaysia Campus

Princeton Digital Group is seeking a syndicated loan of up to US$1.2 billion to fund the construction of a 198.8-megawatt data-center campus in Johor, Malaysia. The three-year loan will be issued to the company's subsidiary, Princeton Digital Group Labuan Alpha, and will be used for both the construction project and the refinancing of existing debt.

HSBC, Maybank, OCBC Bank, Standard Chartered Bank, and UOB are serving as mandated lead arrangers and bookrunners for the deal. This financing effort is part of a larger regional expansion strategy, following a US$856 million raise for projects in Indonesia in May. The company has set a total debt target of US$5 billion to support its growth across the region.

The expansion occurs during a global surge in investment for AI infrastructure, although some investors have recently expressed caution regarding AI valuations.