GDS, a leading developer and operator of high-performance data centres in Asia, has officially formed a joint venture with Indonesia Investment Authority (INA), Indonesia’s sovereign wealth fund, aiming to propel the growth and advancement of the data centre landscape in Indonesia.
The signing ceremony, witnessed by the President of Indonesia, Joko Widodo, took place on 16 October 2023 at the China-Indonesia Business Forum in Beijing on the eve of the 3rd Belt and Road Forum for International Cooperation.
Following the initial partnership announcement on September 1 this year, GDS and INA signed the definitive agreements to formalise the partnership, demonstrating their unwavering commitment to pooling together resources, expertise and visions to develop a nationwide data centre platform in Indonesia.
The first project focuses on the development of a hyperscale data centre campus located in Nongsa Digital Park (NDP), Batam, an area officially designated as a Special Economic Zone (SEZ) by the Indonesian government. The upcoming Batam data centre campus will utilise local and renewable energy sources while integrating GDS’s advanced Smart DC (Data Center) solution, promising to establish an industry benchmark for the region.
“I am delighted with the substantial progress we have made in forming a joint venture with INA,” said William Huang, Chairman and CEO of GDS. “Through the utilisation of our advanced solution and expertise, together with INA’s strategic investment, this partnership represents not only a collaboration but also a synergistic relationship. As we embark on this transformative journey, we reiterate our unwavering commitment to enhancing Indonesia’s digital connectivity and data capabilities. At GDS, we are here to create a resilient and innovative digital ecosystem that propels Indonesia to the forefront of the regional digital economy.”
Ridha Wirakusumah, CEO of INA, added: “This partnership signifies a remarkable step forward in our mission to catalyse the Digital Transformation of Indonesia. With GDS’s unparalleled expertise in high-performance data centre development and operation, we are strategically positioned to augment Indonesia’s digital infrastructure landscape. This is not just a milestone for INA and GDS but a leap towards realising the vast potential and opportunities in Indonesia’s digital future.”
Amid growing demand for digitally empowered services, Indonesia has the distinction of achieving a second-place ranking in the APAC region in the data centre opportunity index, with 22MW of take-up in 2022. The data centre industry continues to witness unprecedented growth, primarily driven by the widespread adoption of cloud computing and the anticipated surge in AI applications. In this market environment, the joint venture between GDS and INA is strategically positioned to strengthen their commitment to scaling Indonesia’s digital infrastructure. This partnership also contributes significantly to the nation’s digital economic growth and data onshoring initiatives.
GDS and INA extend appreciation to all stakeholders and anticipate finalising the transaction by the end of the year. Their vision is to accelerate the implementation of crucial digital infrastructure and guide businesses and organisations toward a prosperous digital future, aspiring for Indonesia’s digital infrastructure to emerge as a regional symbol of innovation, sustainability and excellence.
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