Indonesia secures 2.3 bln USD foreign investment for data center development

Indonesia has secured an investment worth 2.3 billion U.S. dollars from the Dubai-based digital infrastructure company EDGNEX for data center development, Minister of Communication and Digital Affairs Meutya Hafid said on Thursday.

Meutya said that the investment would be used to build modern data center infrastructure on a 12-hectare site in the Cikarang industrial area, West Java province.

The initial phase of the project is targeted for completion by 2026 and will continue to develop through 2028.

"The data center is part of the backbone of Indonesia's digital transformation. The presence of EDGNEX is seen as a positive signal of the increasing trust from global investors in our country's digital ecosystem," Meutya said in an official release.

According to data from the ministry, Indonesia's data center capacity has increased to 290 megawatts (MW) since last October. The national capacity is projected to soar to 900 MW by the end of 2025.

"The rapid increase in capacity indicates that Indonesia is pursuing a strategic position in the region. The government will continue to open up extensive opportunities for new investments. Indonesia has great potential to become a major digital data hub in the Southeast Asian region," Meutya said.