PDG Unveils its new US$1bn AI-Ready Data Centre in Japan

Launched in Saitama City, TY1 is Princeton Digital Group’s (PDG) new US$1bn next-generation facility with 96MW of IT capacity. 

Located 35 kilometres from central Tokyo, the data centre is set to deliver 140kW per rack of high-density capacity specifically to support intensive AI computing requirements. It is expected to address current market constraints through Saitama.

“AI has reshaped the data centre landscape, driving demand for advanced infrastructure across Asia. Our US$1bn investment in TY1 demonstrates our commitment to Japan as part of our Pan-Asia growth strategy,” says Rangu Salgame, Chairman, CEO and Co-founder of PDG. 

Capitalising on a growing data centre market

In recent years, Japan has experienced skyrocketing demand for data and data centre services. In 2021, it was predicted that the country’s market would grow by more than 41% and reach a value of 2.24 trillion yen (US$15.65bn) by 2027.

Today, Tokyo’s colocation market is on track to double from US$3.7bn in 2024, to US$7.3bn by 2030, according to Structure Research. Likewise, hyperscale and AI-related demand is expected to grow from 57% of the overall market to approximately 75% by 2030.

This is very timely for Tokyo, as existing facilities are facing land limitations and an inability to scale reliable power and connectivity as a result. Saitama therefore presents a valuable solution for the area, PDG says, given its resources and strong links to existing clusters of infrastructure. 

“Saitama offers scalable resources that address constraints faced in traditional hubs” Rangu adds. 

“With industry-leading power density and sustainability, TY1 further strengthens PDG's position as the partner of choice for hyperscalers deploying AI workloads in the region.”

The investment from PDG also capitalises on Saitama Prefecture's land availability, stable power resources and established fibre optic network. Additionally, the facility will be able to provide carrier-neutral connectivity to central and eastern Tokyo, Inzai and key submarine cable landing stations.

Prioritising efficiency

For data centre operators evaluating data centre options in the Greater Tokyo region, the TY1 campus represents a purpose-built solution for organisations requiring substantial computing power for AI applications. 

PDG explains that the campus architecture allows for flexibility in deployment, while maintaining the technical specifications needed for next-generation workloads. The facility could also offer additional reassurance for multinational clients seeking more consistency across their APAC digital footprint.

Energy efficiency is also a core design principle for the TY1 campus, with systems optimised to handle the thermal management challenges presented by high-density AI computing. 

Likewise, the integration of liquid cooling capability represents a forward-looking approach to heat dissipation that conventional air-cooled systems cannot match at these power densities.

Rangu explains: “With the launch of the TY1 campus, PDG further strengthens its commitment to being a leading Pan-Asia data centre operator focused on creating sustainable value and enabling digital growth across the region's fastest-growing digital economies.”

PDG is pushing sustainability across other parts of Asia, having secured a green loan last year for its data centre in Singapore.

This was the second green loan PDG secured in 2024, as the company committed to expanding its services across the region. The SG1 data centre is at the centre of the company’s data centre strategy which encompasses more than 500 MW across Singapore, Johor and Batam. 

It is designed to help customers scale and leverage the unique characteristics of the Singaporean data centre hub.

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