May. 22 at 1:47 AM
Princeton Digital Group, backed by Warburg Pincus, has launched the sale of its China assets for up to
$1 billion, the Financial Times reported Friday.
PDG owns data centers across six Chinese cities. The potential deal would mark the end of nearly a decade of investment by global private equity firms in China’s digital infrastructure sector.
Starting in 2017, investment groups such as Bain, Warburg Pincus, and Carlyle poured billions into China’s data center industry, driven by rising demand from cloud service providers linked to Alibaba, Tencent, and ByteDance.
However, Beijing’s tighter cybersecurity and data protection rules have made foreign ownership of critical digital infrastructure politically sensitive. At the same time, AI-driven demand has boosted valuations, giving international investors an opportunity to exit to local buyers and reallocate capital across other Asian markets.
$BABA $TCEHY $BYTEDANCE