Singapore based Princeton Digital Group (PDG), has reached an agreement to acquire 70% ownership of telecommunications operator XL Axiata Data center portfolio.

XL Axiata data centers is the second largest mobile communication company in Indonesia, and currently operates five data centers located in Pekanbaru, Cibitung, Surabaya, Bintaro and Bandung.

 “Our knowledge and work in the telecoms industry, combined with the broad expertise and experience of the PDG team, make this new entity the preferred partner for large-scale digital service providers and multinational companies, that are rapidly expanding operations here in Indonesia and in the Asia-Pacific region,” said Dian Siswarini, president, director and CEO of XL Axiata.

PDG is set to layout $100 million in commitment to the growth capital for expanding the capacity of existing facilities. According to Rangu Salgame, chairman and CEO of Princeton Digital Group, the company also intends to build a new hyper-scale data center by the end of this year.

The new joint venture said it will see the establishment of Princeton Digital Group Data Centers, which will be positioned as a carrier-neutral data center operator to serve a broad range of customers from hyperscalers, through enterprises to telecommunication operators.

“With this continued investment, the joint venture will become the market leader in Indonesia as well as one of the largest data center operators in Southeast Asia,” adds Salgame.

PDG is backed by Warburg Pincus, a private equity investment firm, and seem to have prepared for a significant takeover and growth. In Singapore, PDG hired Asher Ling, formerly the COO of Kingsland Data Centre, as its managing director in the city state. Recently, the company also hired Vipin Shirsat, formerly a VP at STT GDC, as MD and GM of Indian operations.