DBS and UOB have jointly arranged a significant loan of IDR 6.7 trillion (SGD 530 million) to support the development of a new data centre campus in Batam, Indonesia. This financing agreement is notable for being the largest rupiah-denominated deal ever secured for a data centre project. The development is spearheaded by DayOne, a Singapore-based data centre developer and operator, alongside the Indonesia Investment Authority (INA). It also marks INA’s initial investment in this sector.
The funds will be allocated to build and manage three data centres within Batam’s Nongsa Digital Park (NDP). The park aims to act as a ‘digital bridge’ between Singapore and Indonesia, allowing companies from Singapore to utilize Indonesian infrastructure and talent while enabling Indonesia to benefit from technological advancements from Singapore. Once completed by the end of 2025, the DayOne Nongsa Digital Park Data Centre campus will offer an IT load capacity of approximately 72MW, contributing around 5% to Indonesia’s anticipated total data centre capacity by 2029.
This development comes at a time when Southeast Asia is undergoing digital transformation, leading to increased demand for data centre services. According to Boston Consulting Group research, the region’s need for such facilities could rise significantly by 2030. The Singapore-Johor-Batam corridor is expected to meet much of this demand.
Jamie Khoo, CEO of DayOne, stated that “this landmark financing — the largest rupiah-denominated facility ever secured for a data centre development — is a strong endorsement” of their capabilities and commitment to strengthening regional digital infrastructure.
Amit Sinha from DBS Bank highlighted that “expanding the region’s data centre capacity will accelerate the digital transformation” across Southeast Asia. He emphasized that enhanced connectivity between Indonesia and Singapore positions both markets well for future growth in computing power demand.
Mr Harapman Kasan from UOB Indonesia remarked on how this partnership aligns with Indonesia’s ambition to become a regional digital hub and noted Batam’s strategic importance as a gateway to Singapore.
DayOne has partnered with INA through a joint venture aimed at advancing Indonesia’s data centre landscape. Headquartered in Singapore, DayOne operates multiple strategically located centres across Asia including locations like Johor in Malaysia and Greater Bangkok among others. Meanwhile, INA serves as Indonesia’s sovereign wealth fund under government ownership.
