Sinarmas Group, in partnership with LG CNS Co Ltd, has planned to construct an advanced data center in Kuningan, South Jakarta, with a project value of Rp4.7 trillion (US$300 million).
The data center, operated by their joint venture company, PT LG Sinarmas, is set to be completed by the third quarter of 2026 and begin operations in the final quarter of the same year.
Franky O. Widjaja, Chairman of Sinarmas Group, cited on Tuesday, September 10, 2024 the growing demand for data centers in Jakarta, particularly from banking clients and Korean investors.
The facility will be the first AI-powered data center in Indonesia, covering an area of 8,516 square meters.
Han Dong-Hyup, CEO of LG Sinarmas, noted that most clients will come from the banking sector, affiliated with either Sinarmas Group or Korean investors.
The Kuningan project is the first of its kind for LG Sinarmas, and the group is eyeing further opportunities, including potential investments in the Nongsa Digital Park Special Economic Zone in Batam, Riau Islands, which is projected to attract US$3 billion in investment.
The Indonesian government, through the Coordinating Ministry for the Economy, has confirmed that six new investors from China, Japan, and the United States are lining up to invest in data centers across Indonesia, particularly in Nongsa Digital Park.
This rapid growth highlights Indonesia’s increasing role as a regional data hub, especially in the wake of Singapore’s moratorium on new data centers due to high energy and water demands.
