Singapore's Princeton Digital Group bought 70 percent of PT XL Axiata Tbk (IDX: EXCL) data center service business and formed a joint venture company (JVC) called Princeton Digital Group Data Centers - Photo by the Company
Jakarta (TheInsiderStories) – Princeton Digital Group (PDG), an internet infrastructure developer and operator based in Singapore acquired 70 percent of PT XL Axiata Tbk (IDX: EXCL) data center service business and formed a joint venture company (JVC) called Princeton Digital Group Data Centers (PGDC), said the management on Wednesday (07/03).
The new JVC were established with an authorized capital of Rp10 billion or $709,219. This capital consists of 100 thousand shares with a nominal value of Rp100 thousand a share.
PDG’ chairman and CEO Rangu Salgame said in an official statement, the establishment of the JVC to support the existence of the company business in Indonesia. The provider will become a data center operator and serve large-scale companies, domestic unicorns, and telecommunications companies.
He revealed, PDG will increase the capacity of existing data centers and build a massive data center later this year. As the result, the joint venture will become the market leader in Indonesia and one of the largest data center operators in Southeast Asia.
“Our goal is indeed to build a portfolio of multi-billion digital infrastructure,” said Salgame.
President Director and CEO XL Axiata Dian Siswarini stated, with the existence of this data center company, the operator will focus more on cellular business. It will also combine XL Axiata’ capacity in the telecommunications industry with the experience of PDG in the field of telecommunications and technology to make this data center company a choice of digital service providers in Indonesia and the Asian region.
The data center company’ presence is inseparable from the vast potential of Indonesia’ digital economy, which will dominate Southeast Asia in 2025. It said, throughout Southeast Asia, the data center service market value will increase doubled in the next four years.
According to Technavio, the data center service market in this region will grow stably at a combined annual growth rate of around 14 percent during the period 2017 to 2021.
In the first quarter (1Q) of 2019, XL Axiata recorded an increase in sales and operating revenues by 8.46 percent to Rp5.97 trillion (US$420.42 million) from Rp5.5 trillion in the same period on the previous year. Net income reported worth of Rp57.19 billion, or up 270.64 percent from the same period in 2018 of Rp15.43 billion.
Siswarini said the increase in revenue was driven by the rise in service revenue. XL Axiata recorded an improvement in service revenue by 12 percent to Rp5.38 trillion in the 1Q of 2019 compared to the 1Q 2018 with amount of Rp4.81 trillion.
US$1: Rp14,200
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