Princeton Digital Group to invest $1 bn in India for AI-ready data centres

Singapore-based data centre operator Princeton Digital Group (PDG) on Thursday announced an investment of $1 billion in India as part of its new $5 billion plan for artificial intelligence (AI)-ready data centres in Asia.

Many data centres are evolving into AI data centres today. Traditional centres handle lower power densities of 6-15 kilowatts (kW) per rack, suitable for standard IT equipment. However, AI workloads, especially in high-performance computing and deep learning, require 20-50 kW or more per rack due to their high computational demands and heat production. This shift necessitates a re-evaluation of data centre designs to accommodate increased power demands and the unique challenges of AI workloads.

The company said it was taking its total capacity to 230 MW in Mumbai and Chennai.

“India is well positioned to be a global AI leader, and we are determined to play an important role in making that happen. As one of the fastest growing data centre operators, our $1 billion investment in India is a testament to our deep commitment to the country’s AI and cloud ecosystems” said Rangu Salgame, Chairman, CEO and Co-founder, PDG.

In addition to expanding its MU1 campus in Mumbai, PDG is entering Chennai with CH1, the 72 MW AI-ready campus. The hyperscale data centre facility will be built over 9.3 acres with scalability for future expansion.

“By adding three new buildings in Mumbai and by entering Chennai, we are significantly enhancing our hyperscale AI-ready infrastructure footprint in the country,” said Salgame, adding that both MU1 and CH1 are AI-ready campuses, supporting high-density deployments and cutting-edge cooling technologies.

“With the advent of AI in India, both locations are well-positioned to become leading AI infrastructure hubs as well,” said Vipin Shirsat, Managing Director of PDG India.

The MU1 data centre in Mumbai is contracted to be powered 50 per cent with renewable energy. The company said that it is procuring more reliable and viable renewable energy for its expanded Mumbai campus and the new CH1 data centre campus.

The company recently unveiled its 500 MegaWatt expansion strategy across Asia with a $5 billion investment programme that will see PDG increase its capacity and presence in India, Indonesia and Malaysia.

India has seen a surge in demand for data centres due to the increasing need for data processing and storage in recent years. As the second-largest internet market, it hosts facilities from major tech companies like Amazon, Google, and Microsoft, along with local firms.

According to market research firm CareEdge Ratings projections, India's data centre capacity will double from 0.9 GW in 2023 to nearly 2 GW by 2026, creating significant investment opportunities with an expected capital expenditure of ₹50,000 crore over the next three years, making India one of the fastest-growing markets globally.