DBS and UOB have jointly arranged a landmark $530m loan to finance a new data centre campus in Batam, Indonesia. The project, a collaboration between Singapore-based DayOne and the Indonesia Investment Authority (INA), represents the largest rupiah-denominated financing deal for a data centre. This initiative aims to bolster the digital infrastructure in Southeast Asia, enhancing connectivity between Singapore and Indonesia.
The funds will be used to develop three data centres in Nongsa Digital Park, which is envisioned as a ‘digital bridge’ between the two nations. This development will allow Singaporean companies to tap into Indonesia’s infrastructure and talent, whilst Indonesia benefits from Singapore’s technological advancements. Upon completion by the end of 2025, the data centre campus will have an IT load capacity of 72MW, contributing to 5% of Indonesia’s projected data centre capacity by 2029.
The deal comes amid a surge in demand for data centre capacity in Southeast Asia, driven by digital transformation and the adoption of artificial intelligence. Jamie Khoo, CEO of DayOne, stated, “This landmark financing…is a strong endorsement of DayOne’s proven ability to deliver digital infrastructure at speed and scale.” Amit Sinha from DBS Bank highlighted the strategic importance of the transaction in accelerating the region’s digital economy.
DayOne and INA’s joint venture aims to advance Indonesia’s data centre landscape, with DayOne operating a network of data centres across key Asian hubs. The project aligns with Indonesia’s ambition to become a regional digital hub, as noted by Harapman Kasan of UOB Indonesia.
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