Digital Edge Secures Over $1.6 Billion to Accelerate Expansion in Asia

Digital Edge, a Singapore-based data center provider, has secured more than $1.6 billion in new equity and debt financing. This significant capital will fuel the company’s growth across key Asian markets as it seeks to meet the increasing demand for cloud and artificial intelligence (AI) infrastructure in the region.

Funding Breakdown

Equity Investment:

• Amount: About $640 million.
• Investors: Existing and new investors, including major institutional investors and sovereign wealth funds.
• Subscription Status: The equity offering was highly over-subscribed, suggesting that investors believe in the company’s business model and growth prospects of Digital Edge.

Read also: Vultr Secures $333M Funding to Revolutionize AI Cloud Services

Debt Raise

• Amount: $1 billion.
• Purpose: For campus expansion in enhancing the company’s data center infrastructure across Asia.
  Strategic Ambitions from the Capital Raised

Expansion into Strategic Markets:

• Countries targeted for expansion: Japan, Korea, India, Malaysia, Indonesia, and Philippines.
• Current Footprint: Operating 21 data centers with over 500 MW of critical IT load in service, under construction, and development.
• Future Development: Additional 300 MW reserved for upcoming projects in strategic locations.
  Meeting Growing Demand:Cloud Services: Addressing the surge in cloud adoption across various industries in Asia.
• AI Infrastructure: Supporting the infrastructure needs of AI applications, which require significant computational resources.

Enhancing Service Offerings:

• Unified Platform: Provides a uniform customer experience across all facilities, and is differentiated from competitors who might not have integrated backend services.
• Local Expertise: Working with local partners to navigate diverse regulations and business practices.
  Recent and Upcoming Projects

South Korea:

Incheon Campus: Commissioned a 36 MW facility (SEL2), the first building of a planned 100 MW campus, in October 2024.

Indonesia:

Jakarta Facility: The company inaugurated its 23 MW EDGE2 facility in early 2024 and further strengthened its presence in the Indonesian market.

India:

Navi Mumbai Campus: The company plans to build a 300 MW campus, with the first facility slated to open in the second quarter of 2025, marking a significant entry into the Indian data center market.

Japan:

Tokyo Facility: The company is developing a new hyperscale edge facility, TY07, in downtown Tokyo, which will be the company’s ninth data center in Japan.

Read also: Nuon Raises $16.5M to Advance Bring Your Own Cloud

Market Environment and Industry Developments

Data Center Financing Booming:

• Digital Edge’s successful fund raise points to a more significant pattern of increased data center infrastructure investments across Asia.
• Increased demand for cloud services and AI applications is boosting the need for reliable and scalable data center solutions.

Regional News:

• Malaysia: Yondr Group closed a $900 million hyperscale data center campus in Johor, which marked a new benchmark in the attractiveness of the region for data center investments.
• Data centers in Indonesia:
• LG Sinar Mas declared investment in a USD 300M data center within South Jakarta.

This again affirms the immense growth of Southeast Asia’s market for data center.

Environmental Sustainability

Energy efficiency Invest in high-density power solutions and pioneering cool technologies to yield lower PUE ratios.

Embracing Liquid cooling technology increases energy efficiency from facilities.

Being carbon neutral, by 2030.

Targeting 50% of power consumption from green or renewable energy sources by 2025, aligned with global sustainability standards.

Leadership Perspectives

Samuel Lee, CEO of Digital Edge:

• He stated that the new financing is a major milestone and validates the quality of the company’s platform and team.
• He was excited to deliver on the next phase of AI-ready data center developments, which will look to provide a consistent customer experience across the platform.

John Freeman, President of Digital Edge:

• The company highlighted that efficient and flexible funding will drive the continued execution of the company’s vision.
• The company is focused on building out the digital infrastructure in order to better meet customers’ cloud, AI, and interconnection requirements.

Summary

Digital Edge’s successful raising over $1.6 billion capital underscore its strategic commitment to expanding and enhancing data center infrastructure across Asia. By focusing on core markets and developing cloud and AI services that fill the gaps growing in the need for cloud services, Digital Edge is strategically set to play a central role in digital transformation in the region. Focused on sustainability with a unified service platform, the firm aims at setting a standard that will serve consistent and efficient solutions to customers amid the ever-evolving landscape of the data center industry.