PDG Explores $1 Billion Sale of China Data Center Assets

Princeton Digital Group (PDG), a major data center operator backed by private equity firm Warburg Pincus, has reportedly launched a sale process for its China-based assets that could be valued at as much as $1 billion, according to a Financial Times report published Friday. The move highlights the changing landscape of China’s digital infrastructure sector and the growing shift of foreign investors away from strategic technology assets in the country.

PDG currently operates data centers in six major Chinese cities and has been one of several international investment groups that aggressively expanded into China’s booming data center market over the past decade. Beginning around 2017, global buyout firms including Bain Capital, Carlyle Group, and Warburg Pincus invested billions of dollars into Chinese digital infrastructure, betting on rising demand from cloud computing giants such as Alibaba, Tencent, and ByteDance.

The rapid expansion of cloud services, artificial intelligence, and online platforms fueled strong growth in demand for large-scale data storage and processing facilities. However, China’s increasingly strict cybersecurity regulations and data protection laws have created new challenges for foreign ownership of critical digital infrastructure assets. Beijing has tightened oversight of sensitive data operations, making it more difficult for overseas investors to maintain long-term control of strategic technology facilities.

At the same time, the recent AI boom has significantly increased data center valuations across Asia, creating favorable conditions for international investors seeking profitable exits. Analysts believe many global private equity firms are now looking to sell Chinese assets to domestic buyers while redirecting capital toward faster-growing markets in Southeast Asia and other parts of the region.

The trend has already accelerated in recent years. In 2025, Bain Capital sold its China data center portfolio to a local investor consortium led by Shenzhen Dongyangguang Industry in a deal valued at approximately $4 billion. Bain retained ownership of Bridge Data Centers’ operations outside China, signaling a broader strategy shift among foreign investors operating in the sector.

PDG’s potential sale could become another major milestone in the transformation of China’s data center industry as geopolitical pressures, AI demand, and regulatory changes continue reshaping the global digital infrastructure market.