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INA and GDS collaborate to develop data center in Nongsa Special Economic Zone
The Indonesia Investment Authority (INA), Indonesia's sovereign wealth fund, and GDS, a developer and operator of data centers in Asia with a wide base of international investors, have announced a partnership to develop and expand the data center landscape in Indonesia
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he Indonesia Investment Authority (INA), Indonesia's sovereign wealth fund, and GDS, a developer and operator of data centers in Asia with a wide base of international investors, have announced a partnership to develop and expand the data center landscape in Indonesia. Indonesia is a growing data center market with a similar vision of the pivotal role of data centers in its digital transformation.
INA and GDS plan to establish an equity-based joint venture to develop a data center platform throughout Indonesia. The first project to be completed is the development of a large-scale hyperscale data center campus located in the Nongsa Digital Park (NDP) Special Economic Zone (SEZ) in Batam.
The GDS-INA partnership comes at a crucial moment, especially as the data center industry is rapidly expanding, supported by Indonesia's digital economic transformation, IoT technology, a massive shift toward cloud computing and the widespread use of artificial intelligence (AI). According to market research, Indonesia's data center market capacity is projected to increase from 514 MW in 2023 to 1.41 GW in 2029. Thus, Indonesia aims to capture the opportunities presented by the growing demand for data center services. This step aims to attract domestic and foreign investments that support Indonesia's digital economy.
Since its establishment through Presidential Regulation No. 68/2021, investment in the Nongsa SEZ has continued to grow, with achievements exceeding Rp 2.49 trillion in the first half of 2023. This figure includes Rp 751.8 billion from Nongsa SEZ's realized investments and Rp 1.74 trillion from business actors.
Muhammad Rudi, the Chairman of the Batam Authority (BP Batam), is optimistic that the Nongsa SEZ can have a positive impact on the regional economic growth. Rudi expressed BP Batam's commitment to accelerate investment values in the Nongsa SEZ.
"Let's support the realization of Batam as a digital bridge between Indonesia and Singapore. Increased investment in Batam also contributes to economic growth," he concluded.
