Bank DBS Indonesia and Bank UOB Indonesia have jointly provided a Rp6.7 trillion (US$412 million) loan to fund the development of a large-scale data center campus in Batam, Riau Islands. 

The project, a collaboration between digital infrastructure firm DayOne and Indonesia Investment Authority (INA), marks the largest rupiah-denominated financing ever secured for data center development in the country.

The funds will be used to build and operate three advanced data centers at the Nongsa Digital Park (NDP) in Batam, with the project slated for completion by the end of 2025. Upon completion, the facilities will have a combined IT load capacity of 72.4 megawatts (MW) − equivalent to about 5 percent of Southeast Asia’s projected total data center capacity of 1.41 gigawatts (GW) by 2029.

Jamie Khoo, CEO of DayOne, expressed confidence in Indonesia’s growing digital infrastructure landscape, stating that the facility is set to become the most advanced data center campus in the country.

“The DayOne NDP campus will be the most advanced data center in Indonesia, purposely-built to support AI technologies and to serve as a cornerstone for the next wave of digital transformation,” Khoo said as quoted in a statement on Thursday, June 5, 2025.

Regional digital ambitions

Lim Chu Chong, President Director of PT Bank DBS Indonesia, said the transaction reflects strong commitment toward Southeast Asia’s digital economy.

“Digital connectivity between Indonesia and Singapore will further strengthen regional competitiveness. This investment will accelerate the adoption of technologies like AI, cloud services, and real-time data processing,” Lim said on Thursday, June 5, 2025.

Hendra Gunawan, President Director of UOB Indonesia, emphasized the importance of sustainable digital infrastructure in supporting inclusive economic growth.

“Batam plays a strategic role as a primary gateway to Singapore. This collaboration aligns with Indonesia’s ambition to become a regional digital hub,” he said.

Singapore-Johor-Batam digital corridor

DayOne and INA have established a joint venture to drive the growth of Indonesia’s data center ecosystem. Headquartered in Singapore, DayOne is a next-generation digital infrastructure provider with an operational presence in key cities such as Johor, Batam, Bangkok, Tokyo, and Hong Kong.

With this investment, Indonesia further solidifies its position in the Singapore-Johor-Batam digital corridor, a region projected to account for half of Southeast Asia’s total data center demand, with expected capacity reaching 3.3GW by 2030.

The DayOne campus in Batam is not only set to transform Indonesia’s digital backbone but also represents a pivotal step toward positioning the nation as a key player in the region’s AI-driven digital economy.