DBS and UOB have arranged a significant loan facility of IDR 6.7 trillion (SGD 530 million) to support the development of a new data centre campus in Batam, Indonesia. This project is a collaboration between Singapore-based DayOne and the Indonesia Investment Authority (INA). The financing marks the largest rupiah-denominated agreement for such a development.
The funds will be used to establish three data centres within Nongsa Digital Park in Batam. The park aims to act as a 'digital bridge' between Singapore and Indonesia, enhancing infrastructure connectivity and digital talent exchange between the two nations. Once completed by the end of 2025, the campus will provide an IT load capacity of approximately 72MW, which will represent about 5% of Indonesia's anticipated data centre capacity by 2029.
The Southeast Asian region is experiencing rapid digital transformation, increasing demand for data centre capabilities. Research from Boston Consulting Group predicts that regional demand could reach up to 6.5GW by 2030, driven by advancements in technology and artificial intelligence adoption.
Jamie Khoo, CEO of DayOne, remarked on the importance of this financing: “This landmark financing — the largest rupiah-denominated facility ever secured for a data centre development — is a strong endorsement of DayOne’s proven ability to deliver digital infrastructure at speed and scale.” Amit Sinha from DBS Bank highlighted that “expanding the region’s data centre capacity will accelerate the digital transformation of businesses within the region.”
UOB's Harapman Kasan emphasized that their partnership aligns with Indonesia's goal to become a regional digital hub: “The partnership with DayOne and INA – in building digital infrastructure that powers a low carbon, digital economy – aligns with Indonesia’s ambition to become a regional digital hub.”
DayOne and INA have formed a joint venture to advance data centre growth in Indonesia. DayOne operates globally with facilities across key locations including Singapore, Johor (Malaysia), Batam (Indonesia), Greater Bangkok, Hong Kong, Tokyo among others. INA serves as Indonesia’s sovereign wealth fund.