Princeton Digital's $1.2 billion Johor loan works out to at most $6 million a megawatt

Divide the $1.2 billion ceiling that Bloomberg's unnamed source described ^[1] by the 198.8 megawatts of the Johor campus ^[2] and the quotient is about $6.04 million of debt per megawatt ^[11]. That is the most the build could carry (or rather, the most it could carry if every dollar went to construction, and the proceeds also refinance existing debt ^[2]).

The size comparison has the same problem. PDG took a $280 million green loan for its Johor data center campus in 2024 ^[10], so a $1.2 billion facility is up to 4.3 times larger ^[12]. If the refinancing leg retires that earlier loan, net new money falls to as little as $920 million ^[18]. The reports do not say whether it does, how the proceeds divide between building and refinancing, what each bank would hold, or at what price.

The gross-versus-net question also sits under the debt target. Add the full loan to the roughly $856 million PDG said it raised earlier this year for Indonesia ^[6] and the total is $2.056 billion ^[13], or 41% of the $5 billion target ^[7][14], with $2.94 billion left ^[15]. If the target counts only new borrowing, the refinanced share comes off that 41%.

Our view is that the evidence shows five banks mandated to arrange a loan of up to $1.2 billion ^[4]. Whether they will hold it is a separate question, and closing will answer it. The counter-thesis has numbers behind it. AI-related debt issued globally reached roughly $450 billion by early September, more than double all of 2025, according to a Morgan Stanley estimate cited by the Bank of England ^[8], and the economist Stijn Van Nieuwerburgh told Brookings that about $1.4 trillion of debt has gone into financing data centers, with banks holding roughly half ^[9]. Against $450 billion, a $1.2 billion loan is about 0.27% ^[17], a size we would expect five banks to place.

We would be wrong if the facility closes at the full $1.2 billion with the arrangers keeping most of it, because that would put real appetite behind a ticket 4.3 times the 2024 loan ^[12]. A close well below the ceiling would confirm the narrower reading.