Asia Pacific data center developer Princeton Digital Group (PDG) is set to roll out the use of Hydrotreated Vegetable Oil (HVO) as a replacement for diesel across its Indonesian data center operations.

PDG partnered with Pertamina Patra Niaga, a state-owned renewable diesel producer, to supply “locally produced” HVO to PDG’s data centers.

“Our partnership with Pertamina Patra Niaga is a testament to PDG’s commitment to responsible and sustainable growth across Asia Pacific,” said Varoon Raghavan, chief operating officer and co-founder of PDG. “As Indonesia’s digital economy rapidly expands, PDG is enabling this transformation with data centers built for scale and sustainability. The deployment of HVO in Indonesia marks a critical step in our strategy to reduce Scope 1 emissions and accelerate the energy transition, while setting a new benchmark for sustainable digital infrastructure in the region.”

According to PDG, the initiative is part of its broader commitment to achieve net zero across its Scope 1 and 2 emissions by 2030. The quantity of HVO that Pertamina will supply has not been disclosed, nor has the timescale and length of the supply contract.

“This collaboration with PDG is a significant step in our mission to accelerate Indonesia’s sustainability journey through strategic partnerships,” said Alimuddin Baso, director of central marketing and trading at PT Pertamina Patra Niaga.

HVO is a biofuel manufactured through the use of vegetable oil, animal fat, or used cooking oil. Compared to traditional diesel, it offers a lower carbon option, which can significantly reduce emissions related to backup generation. According to PDG, the switch to HVO will reduce carbon emission levels from its backup gen sets by between 70 and 90 percent, while also improving air quality and reducing the level of harmful pollutants in the atmosphere.

PDG currently has six operational data centers in Indonesia, located in Jakarta, Surabaya, Bandung, and Pekanbaru. It also has a 96MW campus under development in Batam.

The company has signed several deals in an effort to decarbonize its operations in the country. In August 2023, it signed an agreement with PT Cikarang Listrindo Tbk to use the company's biomass-sourced energy in its Cibitung data center in Indonesia.

Previously, it purchased renewable energy certificates tied to geothermal energy from the Kamojang geothermal plant, operated by Pertamina, to power its operations in Indonesia.

PDG was established in 2017 and also operates data centers across China, Singapore, India, Malaysia, and Japan. Earlier this year, it secured $1.2 billion in financing to support its growth across the Asia Pacific region.