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Indonesia signs 1GW data centre project with potential $10bn in CAPEX

Deal was signed at the Dubai Expo in Dubai in the presence of Indonesia’s President Joko “Jokowi” Widodo and Prime Minister of the UAE and Ruler of the Emirate of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum.

By João Marques Lima

Co-founder and Editor, The Tech Capital

3 Mins

November 09, 2021 | 4:00 AM GMT

Indonesia signs 1GW data centre project with potential $10bn in CAPEX

Sinar Mas Telecommunication and Technology Chairman & CEO Franky Oesman Widjaja (left) accompanies President Joko Widodo (Jokowi), UAE Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum in the Exchange of Agreement Documents in Dubai during Expo 2020. Source: Sinarmas

Indonesia is to become home to one of the largest data centre infrastructures in the world in an investment that could reach as much as US$6-10 billion at full build.

The data park has been announced by Indonesian wireless network operator PT Smartfren Telecom Tbk (IDX: FREN) and Abu Dhabi artificial intelligence (AI) and cloud computing company Group 42 (G42) who have entered a memorandum of understanding (MoU) to develop the project.

The two parties have not disclosed any information regarding the site’s capital commitment and investors behind it, location or features. The only detail shared has been a 1,000 MW power load.

Consequently, Smartfren and its affiliated company Moratel, which is engaged in fibre optic-based connectivity providers, will collaborate with PT Amara Padma Sehati (APS) and G42, which will act as strategic partners.

The MoU was signed at the Expo 2020 in Dubai in the presence of Indonesia’s President Joko “Jokowi” Widodo and Prime Minister of the UAE and Ruler of the Emirate of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum.

Franky Oesman Widjaja, chairman and CEO of Sinar Mas Telecommunications & Technology, the parent company of Smartfren Telecom, said: “Smartfren understands the importance of data centres as the backbone of the development of the digital industry in Indonesia. We are optimistic that this collaboration will realize the construction of data centres in the country and maintain national data sovereignty, which is being carried out by the government of Indonesia.”

Peng Xiao, CEO of G42, added: “G42 and Etisalat recently merged their data centre businesses to create the largest data centre provider in the UAE with a capacity of around 300MW under construction.

“With our capabilities in cloud computing, we at G42 are happy and ready to work with Smartfren and its partners to support the strategic development of Indonesia’s digital infrastructure in accordance with the highest international standards for facility design, operations and data privacy and security.”

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João Marques Lima

Co-founder and Editor, The Tech Capital

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