Stonepeak Partners is in advanced discussions to invest over $1bn in Singapore-based data centre operator Princeton Digital Group, according to a report by Bloomberg citing sources familiar with the matter, as the US infrastructure investor looks to expand its footprint across the Asia Pacific region.
The potential transaction is expected to take the form of a structured equity deal, though terms remain under negotiation and no final agreement has been reached. Details around the investment size and structure could still evolve, the sources added.
Stonepeak is not alone in courting Princeton Digital. Earlier this year, infrastructure-focused investors including Global Infrastructure Partners – backed by BlackRock – and Morrison showed interest in the company, Bloomberg News reported in February. Princeton Digital has been working with financial advisers to explore strategic options, including both minority and controlling stake sales.
Founded in 2017 by Warburg Pincus and Rangu Salgame, Princeton Digital operates a network of over 20 data centres across China, Singapore, India, Indonesia, Malaysia, and Japan. The firm is focused on developing AI-ready digital infrastructure to support Asia’s growing demand.
Princeton Digital recently announced a $1.2bn financing round aimed at accelerating growth in the region. This followed a $500m round in 2022 led by Abu Dhabi’s Mubadala Investment Company, with participation from Warburg Pincus and Ontario Teachers’ Pension Plan Board.
Stonepeak has been notably active in Asia, having engaged in exclusive talks to acquire Malaysia’s Yinson Holdings in a deal potentially valued at MYR9bn ($2.1bn), as reported in June. Additionally, the firm agreed in May to purchase container leasing company Seaco for a base price of $1.75bn, subject to adjustments.
The Asia digital infrastructure sector continues to attract significant capital from alternative asset managers. Last year, KKR and Singapore Telecommunications formed a consortium investing SGD1.75bn ($1.3bn) in ST Telemedia Global Data Centres via redeemable preference shares and warrants.
