PDG plans infusing $1 bn for expansion in India amid AI data center boom

The investment will bring PDG's capacity to 230 MW across two major hubs, Mumbai and Chennai

Princeton Digital Group (PDG), a leading data centre provider in Asia, has announced a $1 billion investment to expand its data centre capacity in India, according to a company statement.

The investment will bring PDG’s capacity to 230 megawatts (MW) across two major hubs, Mumbai and Chennai. This move is part of the company’s larger $5 billion strategy aimed at strengthening its presence across Asia.

The Singapore-based internet infrastructure developer will triple the capacity of its flagship Mumbai campus, MU1, making it one of the city's largest operational data centre campuses. The expansion includes the construction of three additional buildings, which will bring MU1’s capacity to 150 MW, with the first phase of the 100 MW expansion expected to be completed by 2026. The expanded facility will span 15 acres of land.

In addition to strengthening its presence in Mumbai, PDG is entering Chennai, one of India’s key cloud infrastructure hubs. The company’s new CH1 campus in northern Chennai will have a capacity of 72 MW. The hyperscale AI-ready facility will cover 9.3 acres and is designed to accommodate future scalability, catering to some of the world’s largest hyperscalers.

“Over the last 18 months, AI has completely transformed the data centre landscape. First, we saw the explosion of demand in North America, followed by the initial wave of AI-driven demand in Asia,” said Rangu Salgame, chairman, chief executive officer, and co-founder, PDG. “India is well positioned to be a global AI leader, and we are determined to play an important role in making that happen.”

Both the MU1 and CH1 campuses are designed with high-density deployments and advanced cooling technologies to support the demands of AI-driven infrastructure. PDG’s focus on sustainability remains central, with the company aiming to power approximately 50 per cent of MU1 with renewable energy. Similar renewable energy sourcing will be implemented for both the expanded Mumbai campus and the new CH1 site, stated the press release.

“Mumbai and Chennai have been the pre-eminent hubs for cloud infrastructure in India due to the combination of submarine cable landing proximity, high-quality power supply, availability of renewable energy, and robust infrastructure development,” said Vipin Shirsat, managing director, PDG India. “With the advent of AI in India, both locations are well positioned to become leading AI infrastructure hubs as well.”

Warburg Pincus made its first investment in PDG in 2017, committing up to $300 million. This investment was part of the private equity firm's strategy to build PDG as a key player in the data centre space across Asia, focusing on markets like India, Indonesia, and China.

PDG’s $5 billion investment programme aims to expand its capacity across Asia, with projects in India, Indonesia, and Malaysia, positioning the company as a key player in the region’s AI-ready infrastructure development.