Study of the data-centre market in five countries to support private fundraising by PDG

The problem

• Princeton Digital Group (PDG), a data-centre platform based in Asia–Pacific with a growing footprint in China, Japan, India, Indonesia and Singapore, was seeking funding from investors to support its expansion plans in these countries through a private placement of its shares
• Analysys Mason was engaged to perform a study of the data-centre markets in which PDG has a presence, to support its fundraising

The solution

• For each of the five markets we conducted a review of the country’s data-centre market, including:
  • market readiness – availability of cloud regions, IP transit costs, submarine cable connectivity, broadband adoption and smartphone penetration
  • activity and trends in key customer segments (hyperscale vs. traditional)
  • the state of competition
  • key regulatory developments and issues
• We then developed a model to forecast the demand for and supply of data-centre capacity in each market, by considering the market dynamics, operator announcements and secondary sources of information 
• To help the client have a better understanding of its competitors, we profiled key hyperscale data-centre operators in each of the five markets by comparing several factors (including supply, key customers and market reputation)

Figure: Projected hyperscale data-centre demand and supplied capacity

The result

• PDG successfully closed a USD500+million equity round, with Mubadala Investment Company as a lead investor (of USD350 million). Existing shareholders Warburg Pincus and Ontario Teachers’ Pension Plan Board also took part in this round of investment
• More information on the deal can be found here