Sinar Mas, one of Indonesia’s four largest conglomerates, that dabbles in financial services, real estate, energy and telecommunications among other businesses, has entered into a joint venture with Korea Investment Real Asset Management Co., a unit of Korea Investment Holdings Co., to set up a joint venture for the purpose of building a hyperscale data center in Jakarta, Indonesia.
According to The Korea Economic Daily, the 400-billion-won (US$ 300 million) project will be an 18 MW capacity data center, and will be built on an 8,516-square-meter plot of land. Its total floor area of 44,195 square meters will be spread over 11 above ground floors and one basement level, and it will be located in Menteng Atas, Setiabudi in Jakarta.
As far as investments go, each side will reportedly invest 70 billion won (US$ 53 million) into the 50:50 JV, called Kuningan Mas Gemilang (KMG), and that Korea Investment Real Asset is tapping outside investors to raise the money for its commitment. Additionally, they will reportedly raise 260 billion won in project financing around the third quarter of next year, after winning approval for the construction. They have purchased the land and submitted a request for approval to the relevant authorities in Indonesia. Construction is scheduled for be completed in 2027.
The publication also reported that Korea Investment is also holding discussions with Sinar Mas to build and operate additional data centers in Indonesia, the sources said. Meanwhile, Sinar Mas had, in March agreed to join hands with LG CNS Co., a Korean data center operator, to manage data centers for corporate customers and offer cloud storage services.
According to Arizton Intelligence, “The Indonesia data center market will witness investments of US$ 3.63 billion by 2029, growing at a CAGR of 5.91 percent during the forecast period.” The growth will be driven by the rise of digital technologies such as artificial intelligence (AI) and big data, improved inland and submarine cable connectivity, uptake in cloud services, demand for strong data storage and processing capabilities.
