Princeton Digital opens USD $1 billion AI data centre in Saitama

Princeton Digital Group has launched its TY1 campus, a USD $1 billion data centre facility in Saitama City designed to support high-performance AI computing.

The TY1 campus, located approximately 35 kilometres from central Tokyo, has an IT capacity of 96MW and delivers 140kW per rack of high-density capacity. This figure is among the highest globally for data centres supporting AI workloads, positioning TY1 as one of the largest and most advanced sites of its kind in Japan.

The facility was developed with the purpose of meeting demand from hyperscale customers and supporting AI-related deployments, which require robust power, scalable land, and extensive connectivity. As the data centre market in Japan undergoes rapid growth, reports from Structure Research indicate that Tokyo's colocation market is projected to double from USD $3.7 billion in 2024 to USD $7.3 billion by 2030. During this period, hyperscale and AI-related demand is expected to increase from 57% to roughly 75% of the market, with an annual growth rate surpassing 20%.

Constraints on land and power in central and eastern Tokyo have made regions like Saitama increasingly attractive for infrastructure expansion. Saitama offers accessible land and power, alongside reliable connectivity to existing digital clusters, allowing operators like Princeton Digital Group (PDG) to address the needs of partners deploying AI workloads.

Rangu Salgame, Chairman, Chief Executive Officer and Co-Founder of PDG, commented on the company's investment and its implications for the Japanese market. "AI has reshaped the data center landscape, driving demand for advanced infrastructure across Asia. Our USD 1 billion investment in TY1 demonstrates our commitment to Japan as part of our Pan-Asia growth strategy," he said. "Saitama offers scalable resources that address constraints faced in traditional hubs. 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 TY1 campus leverages several advantages of the Saitama Prefecture, including the availability of stable power resources, accessible land, and a fibre optic network providing carrier-neutral connectivity to central and eastern Tokyo, Inzai, and key submarine cable landing stations. The facility has also been constructed with a focus on seismic resilience, exceeding Japan's rigorous earthquake standards.

From a technical perspective, TY1 has been engineered for next-generation AI deployments. It features a power usage effectiveness (PUE) of less than 1.34 and utilises advanced liquid cooling technologies to support efficient high-density computing. Sustainability considerations formed a core part of the facility's design, with PDG stating that it intends TY1 to strengthen its presence as a Pan-Asia data centre operator and create sustainable value while enabling digital growth across Asia's fastest-growing digital economies.

Representatives present at the launch included Yoshinaga Takahashi, Managing Director of PDG; Rangu Salgame, Chairman, CEO and Co-founder of PDG; Tetsuya Funabashi, President and CEO of Exeo Group; Yoshihisa Kaneko, Director of Economic Affairs at the Saitama City Economic Bureau; and Nobuaki Sekine, Prefectural Assembly Member for Saitama Prefecture.