DBS Bank (DBS) and UOB) jointly announced that it will provide loans of up to 6.7 trillion rupiah (about S$530 million) for a data center campus project in Batam, Indonesia, the largest rupiah loan in the data center industry in history. According t...
DBS Bank (DBS) and UOB) jointly announced that it will provide loans of up to 6.7 trillion rupiah (about S$530 million) for a data center campus project in Batam, Indonesia, the largest rupiah loan in the data center industry in history.
According to research by Boston Consulting Group, it is expected that Southeast Asia will surge to 6.5 gigawatts (GW) by 2030, three times the existing data center capacity in 2023. This is due to the continued digital transformation in Southeast Asia, the growing regional connectivity and the acceleration of artificial intelligence applications.
A joint statement from the two banks on Thursday (June 5) revealed that the data center project in Batam is a joint venture between DayOne (formerly known as GDS International) and the Indonesia Investment Authority, a Singapore-based data center developer and operator.
Southeast Asia is experiencing a rapid digital transformation, with demand for data centers that will triple the supply by 2023 by 2030.
The loan will be funded to develop and operate three data centers located in Nongsa Digital Park, Batam. This data center campus is designed to be a "digital bridge" connecting Singapore and Indonesia, allowing Singaporean companies to leverage Indonesia's infrastructure and digital talent resources. It will also benefit Indonesia from Singapore's technological advancements and investment flows.
DayOne Nongsa Digital Industrial Park Data Center Park will be completed by the end of 2025, with a total IT load capacity of approximately 72 MW. This is expected to account for about 5% of Indonesia's data center capacity (1.41 GW) by 2029.
The Singapore-Johor-Batam Corridor, as the main hub of Southeast Asia's data traffic, is expected to meet up to half of this demand, and by 2030, the corridor's capacity is expected to reach 3.3 GW.
The Batam Data Center project marks a major expansion of DayOne in Indonesia and the first investment by the Indonesian Investment Agency in the data center industry.
