INA and GDS joint venture will complete its first project, namely the hyperscale data center campus at Nongsa Digital Park (NDP), Batam, Riau Islands.
Heaptalk, Jakarta — Indonesia’s sovereign wealth fund, Indonesia Investment Authority (INA) has entered into a partnership with data center developer and operator GDS to develop and expand the data center landscape in Indonesia. Both parties agreed to form an equity joint venture as their vehicle.
This joint venture will complete its first project, namely the hyperscale data center campus at Nongsa Digital Park (NDP), Batam, Riau Islands. The location is considered strategic since the Indonesian Government has officially established it as a Special Economic Zone. The data center campus has the potential to become an industry benchmark in the area by implementing smart data center technology from GDS and utilizing local renewable energy sources.
Based on recent market research, the capacity of the data center market industry in Indonesia is estimated to increase from 514MW in 2023 to 1.41GW in 2029. Currently, the data center industry is experiencing significant growth driven by digital economic transformation, IoT-based technology, transition to cloud computing, and expectations of future adoption of AI.
For this reason, Indonesia seeks to take advantage of the increasing demand for data center services to attract investment, both from within and outside the country. Further, the effort is expected to help accelerate digital economic transformation in this country.
Reflecting Indonesia’s vibrant digital potential
According to the CEO of INA Ridha Wirakusumah, INA’s partnership with GDS is not only a strategic alignment but also a reflection of Indonesia’s vibrant digital potential. Ridha said, “We are experiencing rapid economic growth and making remarkable strides in active digital infrastructure development. Our youthful, internet-savvy population is a testament to Indonesia’s digital readiness and potential. The significant internet penetration rate, coupled with the rise of various digital platforms, indicates the vast opportunities ahead of us.”
Through the collaboration, Ridha emphasized that both parties are not only concerned with expanding digital infrastructure but also with supporting data onshoring and strengthening data connectivity. This step marks INA’s third significant investment in the digital sector, one of the four priority sectors. INA was launched in late 2020 with $5 billion in funding from the government.
Meanwhile, Chairman and CEO of GDS William Huang said that his party was honored to be the first data center developer and operator to join INA. “At GDS, we are committed to creating a value-added ecosystem and fostering the development of digital infrastructure in Indonesia. By integrating our inaugural project in Batam with synergistic projects in Singapore and Johor, we are creating a unique platform ideally configured to serve the digital economy in Indonesia and the Southeast Asia region. We look forward to expanding this platform further into Indonesia in partnership with INA,” Huang stated.
GDS serves over 840 customers as the largest carrier-neutral data center service provider in China. With over 100 data centers, GDS offers data center services to hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, as well as large private sector and multinational corporations.
Recognizing the potential for growth in Asia, GDS established its international headquarters in Singapore in 2021. This move has allowed GDS to develop a strategic Southeast Asia strategy to better serve clients and contribute to the region’s digital economy ecosystem.
