DayOne Data Centres, headquartered in Singapore, is a subsidiary of Chinese data centre giant GDS Holdings. It caters to international clients, with ByteDance and Oracle as its top customers.
Oracle is set to occupy data centre plots at Nongsa Digital Park on Batam island, Indonesia. This location, known for its free-trade zone status and proximity to Singapore and Malaysia, has attracted tech companies seeking strategic advantages. The data centre sites that Oracle intends to lease have the capacity to support at least 120 megawatts, indicating a substantial investment that typically exceeds US$1 billion, factoring in various elements such as location, equipment, and operational needs.
Sources familiar with the deal revealed that Oracle will be the sole tenant at DayOne’s facilities in Batam. Both companies have refrained from commenting on the arrangement.
Oracle currently operates two cloud data centres in Singapore and is in the process of constructing another in Malaysia. Earlier this year, the tech giant established an AI Centre of Excellence in Singapore and unveiled plans to train 10,000 individuals in digital skills by 2027.
Despite the spinoff from GDS Holdings, DayOne Data Centres maintains its ties to the Chinese company, with GDS retaining a stake in the subsidiary. ByteDance remains DayOne’s primary customer, according to data from research firm SemiAnalysis.
The Batam agreement comes amidst a trend of US tech firms bolstering their presence in Asia to support the escalating demand for AI infrastructure. Companies like Meta and Google have concentrated their investments in countries with robust networking capabilities such as Singapore and Malaysia. Salesforce recently committed US$1 billion to Singapore, while Oracle allocated US$6.5 billion towards cloud infrastructure development in Malaysia last year.
This strategic move also aligns with Oracle’s collaboration with OpenAI. Under the Stargate initiative, the AI company is leveraging significant computing power from Oracle as part of a US$500 billion project to establish AI-centric data centres worldwide, supported by key partners like SoftBank.
According to projections by consulting firm Bain, the global market for AI products and services is anticipated to approach US$1 trillion by 2027. This forecast is propelling tech companies to enhance their infrastructure, particularly in Asia where the demand for cloud services and AI solutions is rapidly increasing.
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