ASIATODAY.ID, JAKARTA — Damac Digital, part of the United Arab Emirates-based Damac Group, is planning a multi-billion-dollar investment to develop hyperscale data centers in Indonesia, a project that would significantly expand the country’s digital infrastructure and reinforce its position in Southeast Asia’s fast-growing digital economy.
The planned facilities will have a combined capacity of 1.2–1.3 gigawatts (GW)—more than double Indonesia’s current installed data center capacity of around 600 megawatts (MW), according to Indonesia’s Coordinating Ministry for Economic Affairs.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said the project represents one of Indonesia’s largest announced digital infrastructure investments, highlighting growing investor confidence in the country’s expanding technology sector.
“The investment from the UAE’s Damac Group will be substantial. The planned capacity is around 1.2 to 1.3 GW, while Indonesia’s total data center capacity today is only about 600 MW,” Susiwijono told reporters in Jakarta on Friday.
The government said Damac Digital intends to develop the project across three locations in Indonesia, although the sites have not yet been disclosed. Officials confirmed the facilities will not be located in the Nongsa Digital Park Special Economic Zone on Batam Island.
While authorities have not released an official investment figure, they said the scale of the project implies capital expenditure running into billions of U.S. dollars, reflecting the significant costs of building hyperscale data center infrastructure.
Rising Demand for AI Infrastructure
The investment comes as Indonesia accelerates efforts to attract global technology investment and strengthen its role in Southeast Asia’s digital economy. Demand for data centers is increasing rapidly, driven by the expansion of cloud computing, artificial intelligence, digital services, and enterprise data processing.
Indonesia, home to Southeast Asia’s largest economy and one of its biggest internet user bases, has become an increasingly attractive destination for global digital infrastructure investors seeking long-term growth opportunities.
However, the government acknowledged that hyperscale data centers require substantial electricity capacity and reliable water supplies, making energy infrastructure a key challenge as the industry expands.
To support future growth, Indonesia continues to promote investment through digital-focused special economic zones and technology parks. Nongsa Digital Park in Batam already hosts more than ten international data center operators, including China’s GDS and U.S.-based Equinix, reflecting the country’s expanding role in the regional digital ecosystem.
If realized as planned, Damac Digital’s investment would rank among the largest data center projects in Southeast Asia, reinforcing Indonesia’s emergence as a strategic destination for global digital infrastructure investment as demand for AI, cloud computing, and digital services continues to accelerate. (AT Network)
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