DBS and UOB have jointly provided a significant loan facility of IDR 6.7 trillion (approximately SGD 530 million or $412 million) to support the development of a new data centre campus in Batam, Indonesia. The project is a collaboration between Singapore-based data centre developer and operator DayOne and the Indonesia Investment Authority (INA), and marks the largest rupiah-denominated financing agreement ever secured for a data centre development. The loan will be used to develop and operate three data centres located in the Nongsa Digital Park (NDP) in Batam, which aims to be a “digital bridge” between Singapore and Indonesia.
The data centre campus is expected to have a combined IT load capacity of around 72MW upon completion by the end of 2025, accounting for approximately 5% of Indonesia’s projected data centre capacity of 1.41GW by 2029. This development comes amidst an ongoing digital transformation in Southeast Asia, with demand for data centre computing power expected to surge up to 6.5GW by 2030. The Singapore-Johor-Batam corridor, a major hub for data traffic in Southeast Asia, is projected to meet as much as half of this demand, with the corridor’s capacity estimated to reach up to 3.3GW by 2030.
The financing agreement is seen as a significant endorsement of DayOne’s commitment to Indonesia and the strategic importance of the DayOne NDP campus in strengthening the region’s digital backbone. The campus will be home to Indonesia’s most advanced AI-ready data centre, designed to support the next wave of digital transformation. The partners involved in the project, including DBS, UOB, DayOne, and INA, have expressed their commitment to supporting the growth and advancement of the data centre landscape in Indonesia, with the aim of driving digital transformation and economic growth in the region.
The deal is also seen as a strategic investment in the future of Southeast Asia’s digital economy, with the expansion of the region’s data centre capacity expected to accelerate the digital transformation of businesses within the region. The strengthened digital connectivity between Indonesia and Singapore is expected to better position both markets to capture growing regional demand for computing power. Overall, the development of the data centre campus in Batam is a significant milestone in the expansion of Southeast Asia’s digital infrastructure, and is expected to play a key role in driving the region’s digital growth and economic development.