The American tech giant will lease DayOne’s data centers located at Nongsa Digital Park on the Indonesian island of Batam, according to the people, who asked not to be identified discussing information that’s private. Oracle will be the sole tenant at DayOne plots that could support facilities with at least 120 megawatts of power, they said.
A 120 MW data center typically requires a capital investment of at least $1.2 billion, depending on factors like location, design tier and land costs, and whether the facility is built for hyperscale AI workloads.
Oracle’s expansion confirms an earlier Bloomberg News story that it was in discussions to establish a cloud services center in Indonesia. Representatives for Texas-based Oracle didn’t immediately respond to a request for comment.
Singapore-headquartered DayOne earlier this year was spun out of Chinese data center operator GDS Holdings, which retains a stake. ByteDance is far and away DayOne’s largest customer, according to research firm SemiAnalysis, with Oracle coming in second. DayOne also didn’t respond to a request for comment.
Nongsa Digital Park in Batam is already home to several other data centers, drawn by factors including the island’s free-trade zone status and its proximity to Malaysia and the wealthy city-state of Singapore. Oracle currently has two cloud computing centers in Singapore and last year announced a $6.5 billion plan to build a similar facility in Malaysia.
US tech giants from Meta Platforms to Google are building data centers across Asia to support an envisioned global boom in artificial intelligence services. Much of that investment has gone to countries with better-established tech ecosystems and networks such as Malaysia and Singapore, where Salesforce Inc. recently announced a $1 billion investment.
Bain & Co. estimates that the global market for AI-related products could hit $990 billion by 2027 as the technology’s adoption disrupts the way companies and countries do business. OpenAI is also leasing a huge amount of computing power from Oracle as part of its Stargate initiative – OpenAI’s project with partners including Oracle and SoftBank Group to invest $500 billion in AI infrastructure – to build data centers on American soil and overseas.
