GDS and Indonesia Investment Authority (INA) have revealed their collaboration aimed at fostering the expansion and advancement of Indonesia’s data center landscape.
The envisioned partnership involves the creation of an equity joint venture to spearhead the development of a comprehensive nationwide data center platform. The initial undertaking involves the ongoing establishment of a hyperscale data center campus situated within the Nongsa Digital Park (NDP) in Batam. This location enjoys official recognition as a Special Economic Zone (SEZ) sanctioned by the Indonesian government.
By harnessing GDS’s data center solutions and placing a strong emphasis on harnessing local renewable energy sources, the forthcoming Batam data center campus is poised to establish a new standard for the region’s industry benchmarks.
The GDS-INA collaboration arrives at a pivotal juncture, coinciding with robust growth within the data center sector. This growth is propelled by the transformative influence of the digital economy, the proliferation of IoT-driven technologies, the widespread adoption of cloud computing, and the anticipated surge in AI applications.
This strategic partnership stems from the shared recognition of Indonesia’s promising emergence as a data center market and a mutual understanding of the pivotal role data centers hold in the nation’s digital transformation.
Forecasts from market research indicate a substantial trajectory for Indonesia’s data center market capacity, projected to surge from 514MW in 2023 to an impressive 1.41GW by 2029. This expansion aims to leverage the escalating demand for data center services, attracting both domestic and international investments to catapult Indonesia further into the realm of the digital economy.