The Indonesian government is exploring strategic cooperation with Damac Group, a property and technology infrastructure conglomerate from the United Arab Emirates (UAE). The company is reportedly interested in investing heavily to build a data center in Jakarta.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, revealed that this investment plan is on a massive scale. Damac is projected to build a data center with a capacity reaching 1.2 to 1.3 gigawatts. This figure exceeds the total national capacity, which is currently recorded at around 600 megawatts.
Unlike typical data center investments that are often concentrated in the Nongsa Digital Park Special Economic Zone (SEZ) in Batam, Damac has chosen Jakarta as one of the main locations for their infrastructure development. Susi emphasized that discussions regarding the realization of this project are actively ongoing, including coordination with the Indonesia Data Center Industry Association (IDPro).
Given the large scale of the planned capacity, the estimated investment value of this project is guaranteed to top billions of US dollars. Susi stressed that the future need for data centers in Indonesia is crucial, especially to support artificial intelligence (AI) operations that require high-performance computing.
Although its economic potential is highly promising, the government recognizes major challenges in providing supporting infrastructure, particularly electricity and water supply. The government is currently aligning this investment plan with the availability of national utilities so that the development of the giant-scale data center can run optimally.
