DBS and UOB have partnered to provide a loan of IDR 6.7 trillion (approximately $413 million) to support the construction of a new data centre campus in Batam, Indonesia. This is part of their plan to improve digital infrastructure in Southeast Asia.
On Thursday, the banks announced that the data center project is being developed together by DayOne, a data center company based in Singapore, and the Indonesia Investment Authority (INA). They also mentioned that this project has the biggest loan ever in Indonesian rupiah for this kind of development.
This project marks a significant step for DayOne as it expands its business in Indonesia. It’s also the first time the Indonesia Investment Authority (INA) has invested in this sector.
The loan money will be used to build and run three data centers in the Nongsa Digital Park (NDP) in Batam.
The park is designed to serve as a “digital bridge” connecting Singapore and Indonesia, enabling Singaporean companies to leverage Indonesia’s infrastructure and skilled digital workforce.
It will also help Indonesia benefit from Singapore’s advanced technology and investment.
Once finished by the end of 2025, the DayOne Nongsa Digital Park Data Center will be able to handle about 72 megawatts (MW) of IT power in total.
This will make up about 5% of Indonesia’s expected total data center capacity of 1.41 gigawatts (GW) by the year 2029.
This deal is happening as Southeast Asia is going through a digital transformation, which is increasing the demand for data center computing power.
According to research from Boston Consulting Group, the demand for data centers in the region is expected to rise to 6.5 gigawatts (GW) by 2030, which is three times the current capacity in 2023.
The region’s ongoing digital transformation is driving this growth, facilitating improved connectivity between countries and the faster adoption of artificial intelligence.
The Singapore-Johor-Batam corridor, a key data traffic hub in Southeast Asia, is expected to handle up to half of this demand. Its capacity is predicted to reach 3.3 gigawatts (GW) 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 at DBS Bank, noted that this major deal represents a wise investment in the future of Southeast Asia’s digital economy.
“The strengthened digital connectivity between Indonesia and Singapore better positions both markets to capture growing regional demand for computing power,
“We are honoured 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 at UOB Indonesia, said that the partnership with DayOne and INA to build digital infrastructure for a low-carbon, digital economy supports Indonesia’s goal of becoming 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.
Based in Singapore, it runs a network of data centers in key locations like Singapore, Johor (Malaysia), Batam (Indonesia), Greater Bangkok, Hong Kong, Tokyo, and other important areas.
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