Princeton Digital Group (PDG) has signed a definitive agreement to sell its Indonesian enterprise data centre business — five operational facilities across Greater Jakarta, Bandung, Surabaya and Pekanbaru — to PT SMPlus Digital Investama and its affiliates, sharpening its focus on hyperscale capacity it now measures at 400 MW in the country.

The buyer, SMPlus, is a digital infrastructure and services investment platform backed by Sinar Mas, one of Indonesia's largest conglomerates. Sinar Mas describes itself as a group active across eight business pillars, ranging from pulp and paper and agri-business to financial services, real estate, communications and technology, energy and infrastructure, healthcare and education.

What is PDG actually selling?

The transaction covers five operating enterprise data centres. PDG acquired the portfolio in 2019 when it entered the Indonesian market, and says it has since invested in and enhanced the facilities. For SMPlus and Sinar Mas, the deal adds established enterprise colocation capacity in four of Indonesia's key urban markets — Greater Jakarta, Bandung, Surabaya and Pekanbaru — extending a conglomerate footprint that already spans telecommunications and technology interests.

Neither party disclosed the financial terms of the transaction. PDG announced the signing of the definitive agreement but did not publish a closing date or a purchase price.

Why is PDG walking away from enterprise colocation?

The sale follows a deliberate sequencing strategy, according to PDG's leadership. Rangu Salgame, Chairman, CEO and Co-Founder of PDG, said: "From the outset of PDG's founding, our strategy has been to enter a market, establish a strong operating presence, then expand for scale. In Indonesia, we entered the market through the acquisition of an established data centre portfolio, while investing to expand our capabilities and build a hyperscale business."

In other words, the enterprise assets were the entry vehicle. The hyperscale business built on top of them is the destination. Salgame continued: "We have since developed a 400 MW hyperscale portfolio in the country, comprising our JC2, JC3, and JC4 campuses, and plan to continue to invest in our expansion. This transaction is a natural step to continue serving our hyperscale customers' growing requirements in Indonesia and across APAC."

That positions the disposal as capital recycling rather than retreat: PDG keeps its Jakarta hyperscale campuses — JC2, JC3 and JC4 — which together represent the 400 MW it cites, and divests the smaller enterprise footprint that no longer fits the growth thesis.

How big is PDG's remaining footprint?

PDG says its total portfolio exceeds 1.8 GW across eight countries in Asia-Pacific. Indonesia's 400 MW of hyperscale capacity therefore accounts for roughly a fifth of the group's stated capacity, anchored by the three Greater Jakarta campuses named by the CEO.

The broader market context matters here. Hyperscale demand across APAC has pushed developers toward large, campus-scale builds designed for cloud and AI workloads, where enterprise colocation sites — typically smaller, older and spread across secondary cities — often sit outside the core investment case. Buyers with local scale, such as Sinar Mas, can consolidate those assets and serve domestic enterprise demand.

What comes next?

PDG says it plans to continue investing in its Indonesian hyperscale expansion to serve cloud and large-enterprise customers' growing requirements both in Indonesia and across APAC. For Sinar Mas and SMPlus, the immediate next step is integrating five operating facilities; the parties have not disclosed a completion timeline. With the definitive agreement signed, PDG's capital and management attention now concentrate on the 1.8 GW pan-APAC build-out, starting with its Jakarta campuses.