A historic IDR 6.7 trillion ($413 million) loan facility has been jointly provided by DBS and UOB to finance the construction of a new data center campus in Batam, Indonesia, as part of continuous efforts to increase Southeast Asia’s digital infrastructure.
The banks jointly announced that the largest rupiah-denominated financing agreement ever obtained for such a development supports the data center project, which was developed by the Indonesia Investment Authority (INA) and Singapore-based data center developer and operator DayOne.
With this initiative, DayOne’s footprint in Indonesia has grown significantly, and INA has made its first investment in the industry.
Three data centers in Batam’s Nongsa Digital Park (NDP) will be built and run with the loan’s proceeds.
By serving as a “digital bridge” between the two economies, the park hopes to give Singaporean businesses access to Indonesia’s digital talent pool and infrastructure.
Additionally, it will allow Indonesia to take advantage of Singapore’s investment and technological advancements.
When the DayOne Nongsa Digital Park Data Center campus is finished by the end of 2025, its total IT load capacity will be approximately 72MW.
By 2029, this will make up about 5% of Indonesia’s anticipated 1.41GW data center capacity.
The demand for data center computing power is being driven by Southeast Asia’s ongoing digital transformation, which coincides with this deal.
According to the Boston Consulting Group’s research, the region’s data center demand is predicted to triple from its current capacity in 2023 to 6.5GW by 2030.
The region’s ongoing digital transformation, increasing regional connectivity, and the quickening adoption of artificial intelligence are the main drivers of this.
Up to half of this demand is expected to be satisfied by the Singapore-Johor-Batam corridor, a significant data traffic hub in Southeast Asia, whose capacity is predicted to reach up to 3.3GW by 2030.
“This landmark financing — the largest rupiah-denominated facility ever secured for a data center development — is a strong endorsement of DayOne’s proven ability to deliver digital infrastructure at speed and scale,
“It reflects deep confidence in our long-term commitment to Indonesia and in the strategic importance of the DayOne NDP campus in strengthening the region’s digital backbone,” said Jamie Khoo, Chief Executive Officer of DayOne.
“Our campus will be home to Indonesia’s most advanced artificial intelligence (AI)-ready data center, designed to support the next wave of digital transformation,
“We are proud to contribute to Indonesia and Southeast Asia’s digital growth with high-performance infrastructure that meets the evolving needs of our customers,” he added.
