DBS and UOB have jointly provided a loan facility amounting to 6.7 trillion rupiah ( US$411.5 million ) to finance the development of a new data centre campus in Batam, Indonesia.

The project, jointly developed by Singapore-based data centre developer and operator DayOne and the Indonesia Investment Authority ( INA ), is backed by the largest rupiah-denominated financing agreement ever secured for such a development. The initiative marks a significant expansion of DayOne’s presence in Indonesia and represents INA’s first investment in the sector.

Proceeds of the loan will be used to develop and operate three data centres located in the Nongsa Digital Park ( NDP ) in Batam. The park aims to be a “digital bridge” between the two economies through which Singapore companies can leverage Indonesia’s infrastructure and digital talent pool. It will also enable Indonesia to benefit from Singapore’s technological advancement and investment flows.

Upon completion by end-2025, the DayOne Nongsa Digital Park Data Centre campus will have a combined IT load capacity of around 72 megawatts. This will account for around 5% of Indonesia’s projected data centre capacity of 1.41GW by 2029.

The deal comes amid a digital transformation in Southeast Asia that is driving demand for data centre computing power. According to research by Boston Consulting Group, the region’s demand for data centres is expected to surge by up to 6.5 gigawatts by 2030, triple the capacity as of 2023.

This is driven by the region’s continued digital transformation, growing regional connectivity, and accelerated adoption of artificial intelligence. The Singapore-Johor-Batam corridor – a major hub for data traffic in Southeast Asia – is projected to meet as much as half of this demand, with the corridor’s capacity estimated to reach up to 3.3GW by 2030.

“This landmark financing – the largest rupiah-denominated facility ever secured for a data centre development – is a strong endorsement of DayOne’s proven ability to deliver digital infrastructure at speed and scale,” says DayOne chief executive officer Jamie Khoo.“Our campus will be home to Indonesia’s most advanced AI-ready data centre, designed to support the next wave of digital transformation.”

DayOne operates a network of strategically located data centres across Singapore, Johor ( Malaysia ), Batam ( Indonesia ), Greater Bangkok, Hong Kong, Tokyo, and other key hubs. INA is Indonesia’s sovereign wealth fund, wholly owned by the Indonesian government.