INA and GDS Partner to Transform Indonesia's Data Center Landscape

In a strategic move poised to shape Indonesia's digital transformation, the Indonesia Investment Authority (INA) has joined forces with China-based data center operator GDS. Their shared vision recognizes Indonesia's emerging potential as a pivotal player in the global data center market.

The collaboration is set to establish an equity joint venture, paving the way for a nationwide data center platform. Their maiden project involves the development of a data center campus in Batam's Nongsa Digital Park, a Special Economic Zone designated by the Indonesian government.

This endeavor aims to set industry benchmarks by harnessing GDS's advanced Smart DC solutions and prioritizing the use of local renewable energy sources. It comes at a time when the data center industry is experiencing exponential growth, driven by digital economy transformations, IoT technologies, cloud computing transitions, and the anticipated surge in AI applications.

Market research predicts Indonesia's data center capacity will skyrocket from 514MW in 2023 to 1.41GW by 2029. Indonesia intends to leverage this burgeoning demand to attract both domestic and international investments, propelling the nation further into the digital economy.

Ridha Wirakusumah, CEO of INA, highlighted Indonesia's rapid economic growth and strides in digital infrastructure development. He emphasized their focus on supporting data onshoring and enhancing data connectivity alongside scaling digital infrastructure.

GDS's Chairman and CEO, William Huang, affirmed Indonesia's emergence as a strategic hub to meet the growing demands for premium data center services. The partnership with INA underscores their commitment to fostering digital infrastructure development in Indonesia.

By integrating their Batam project with complementary initiatives in Singapore and Johor, they are creating a unique platform to serve Indonesia's digital economy and Southeast Asia. The initiative aligns with INA's mission to bolster Batam's competitive edge and capture demand spillover from Singapore.

INA's efforts in the digital sector reflect its commitment to driving Indonesia's digital transformation. Established in 2020 with a $5 billion government injection, INA has made strategic investments in various sectors, including telecommunications and travel platforms.

The partnership between INA and GDS aims to develop top-tier data center facilities nationwide, addressing evolving digital consumption needs and elevating Indonesia's digital infrastructure landscape. This collaboration underscores Indonesia's determination to play a leading role in the global digital revolution, capitalizing on its vibrant digital potential and strategic location.