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(Bloomberg) — Princeton Digital Group, a Singapore-based data center operator, is seeking a $400 million private-credit loan, as investors chase opportunities fueled by the boom in artificial intelligence.<\/span><\/p>\n The proceeds would be used to fund capital expenditure and refinance existing debt, according to people familiar with the matter, who asked not to be identified because the matter is private. The loan will carry a four-year tenor, the people said.<\/span><\/p>\n Princeton Digital didn\u2019t respond to requests for comment.<\/span><\/p>\n Data center firms are increasingly tapping funding sources beyond banks as traditional lenders face challenges in keeping up with the rapid pace of\u00a0demand\u00a0for data storage and processing. The market in the Asia-Pacific region has been heating up as private equity investors including Blackstone and KKR & Company have been investing in the data center sector. \u00a0 \u00a0<\/span><\/p>\n Blackstone CEO Steve Schwarzman said earlier this year that the private equity giant is willing to plow more money into its investments related to AI, following its multibillion-dollar acquisition of AirTrunk Pte., an Australia-based data center operator in 2024.\u00a0<\/span><\/p>\n Established in 2017, Princeton Digital operates more than 20 data centers across Asia, including in China, India and Japan, according to its\u00a0website. Warburg Pincus invested in and\u00a0<\/span>helped<\/a><\/span>\u00a0set up the company, along with Princeton Digital\u2019s founder Rangu Salgame.<\/span><\/p>\n