As part of ongoing efforts to expand Southeast Asia’s digital infrastructure, DBS and UOB have jointly provided a landmark IDR 6.7 trillion ($413 million) loan facility to finance the development of a new data centre campus in Batam, Indonesia.

The banks said in a joint statement on Thursday the data center project, jointly developed by Singapore-based data center developer and operator DayOne and the Indonesia Investment Authority (INA), is backed by the largest rupiah-denominated financing agreement ever secured for such a development.

The initiative marks a significant expansion of DayOne’s presence in Indonesia and represents INA’s first investment in the sector.

Proceeds of the loan will be used to develop and operate three data centers located in the Nongsa Digital Park (NDP) in Batam.

The park aims to be a ‘digital bridge’ between the two economies through which Singapore companies can leverage Indonesia’s infrastructure and digital talent pool.

It will also enable Indonesia to benefit from Singapore’s technological advancement and investment flows.

Upon completion by end-2025, the DayOne Nongsa Digital Park Data Center campus will have a combined information technology (IT) load capacity of around 72MW.

This will account for around 5 percent of Indonesia’s projected data center capacity of 1.41GW by 2029.

This deal comes amidst an ongoing digital transformation in Southeast Asia that is driving demand for data centre computing power.

Cited the research by Boston Consulting Group, the statement highlighted that the region’s demand for data centers is expected to surge up to 6.5GW by 2030, triple the existing capacity as of 2023.

This is driven by the region’s continued digital transformation, growing regional connectivity and the acceleration of artificial intelligence adoption.

The Singapore-Johor-Batam corridor – a major hub for data traffic in Southeast Asia – is projected to meet as much as half of this demand, with the corridor’s capacity estimated 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.

Amit Sinha, Group Head of Telecommunications, Media and Technology, Western MNCs and Digital Economy, DBS Bank, said that this landmark transaction is a strategic investment in the future of Southeast Asia’s digital economy.

According to him, expanding the region’s data center capacity will accelerate the digital transformation of businesses within the region as they embrace solutions such as AI, cloud services and real-time processing.

“The strengthened digital connectivity between Indonesia and Singapore better positions both markets to capture growing regional demand for computing power,

“We are honored to have leveraged our deep knowledge of the data center industry and strong relationship with both sponsors to bring this transaction to fruition,” he added.

Harapman Kasan, Wholesale Banking Director, UOB Indonesia, said the partnership with DayOne and INA – in building digital infrastructure that powers a low carbon, digital economy – aligns with Indonesia’s ambition to become a regional digital hub.

“In addition, Batam plays a pivotal role in serving as a key gateway to Singapore,

“As a leading regional bank with deep ASEAN connectivity, we enable inclusive growth by connecting capital to infrastructure that drives innovation and sustainability,” he added.

DayOne and INA have established a joint venture to propel the growth and advancement of the data center landscape in Indonesia.

DayOne is a global data center pioneer that develops and operates next-gen digital infrastructure for industry leaders who demand reliable, cost-effective and quickly scalable solutions.

Headquartered in Singapore, it operates a network of strategically located data centers across Singapore, Johor (Malaysia), Batam (Indonesia), Greater Bangkok, Hong Kong, Tokyo, and other key hubs.

INA is Indonesia’s sovereign wealth fund, wholly owned by the government of Indonesia.



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