Princeton Digital Group Secures US$1.3 Billion Green Financing for Johor Data Center Campus

Princeton Digital Group (PDG) has secured US$1.3 billion in green financing for its JH1 data center campus in Johor, Malaysia, marking one of the largest sustainable financing packages for a data center project in Southeast Asia and underscoring the growing appetite among lenders for digital infrastructure assets tied to stringent environmental standards.

The financing was underwritten by six banks — Affin Bank, HSBC, Maybank, OCBC, Standard Chartered and UOB — expanding a syndicate that has grown alongside the project. The JH1 campus was initially financed by three banks in April 2024, before the facility was upsized with four banks in October 2025. The latest round adds further depth to the lender group and reflects sustained institutional confidence in the project's phased development.

Proceeds from the green financing will be directed toward the continued development and expansion of the JH1 campus. The transaction is structured under PDG's Green Finance Framework and supports the development of JH1 in accordance with recognized green building standards, ensuring that the project's environmental credentials are independently verifiable and aligned with global sustainability benchmarks.

The deal contributes to PDG's broader capital-raising plan, announced in March 2026, to raise up to US$5 billion in debt financing to fund the delivery of contracted data center capacity across Asia-Pacific. The JH1 financing represents a significant milestone in that program and signals the company's ability to access large-scale green capital as it scales its regional footprint.

"This financing reflects the confidence of our banking partners, several of whom have supported JH1 since its earliest phases, in PDG's execution capabilities and deep hyperscaler partnerships," said Rangu Salgame, chairman, chief executive officer and co-founder of PDG, in a statement on Wednesday.

Located in Sedenak Tech Park, JH1 is a 200MW campus designed to support high-density artificial intelligence and cloud workloads. The project's scale and design specifications position it to serve the accelerating demand for AI-ready infrastructure in the region, where hyperscale operators are increasingly seeking capacity that can accommodate power-intensive GPU clusters and advanced cooling requirements.

The green financing structure carries broader implications for the data center sector, where access to capital is increasingly linked to sustainability performance. As lenders and investors apply tighter environmental criteria to large-scale infrastructure projects, operators that can demonstrate credible green building standards and transparent financing frameworks are likely to secure more favorable terms and a wider pool of capital partners. PDG's ability to attract a six-bank syndicate for a single campus suggests that green-labeled data center debt is maturing into a mainstream asset class in Southeast Asia.