Damac spearheads data center developments in Indonesia

Jarkata City in Indonesia is set to host a $2.3 billion AI-focused data center, which will become one of Southeast Asia’s biggest AI-dedicated developments, backed by the Damac Group.

Edgnex Data Centres by Damac announced the multi-billion-dollar investment, which will be the group’s second project of the nature in that region. The data center project is expected to support the region’s booming AI hyperscale market.

The facility is expected to have a capacity of 144 megawatts

According to the DataCentre Magazine, the new project will feature high-density AI racks, setting new benchmarks for next-generation AI infrastructure in the region. It is also forecasted to have a future capacity of 144 megawatts (MW), with a total investment worth $2.3 billion.

The project is expected to be a pivotal asset to Indonesia’s digital journey as the country fast transitions to digitalisation. It will be a critical site in speeding up its transformation from an analogue base to a robust and AI-powered digital economy.

“This is our second project in Indonesia, and this development reinforces our commitment to bridging the digital divide in fast-growing markets across Southeast Asia (SEA), such as Indonesia.”

Hussain Sajwani, founder of DAMAC Group.

“We are proud to build what will become one of Southeast Asia’s most advanced, sustainable data centres to power the next wave of innovation and digital growth,” added Sajwani.

Damac first completed land purchase of the site earlier this year in March and has already started early construction phases. The company has targeted the first phase of the data center to be ready for service by December next year.

According to Sajwani, this project is part of the group’s $3 billion investment earmarked for the region.

“The scale of AI workloads demands a new class of infrastructure… This project is part of our broader push across SEA, where we have committed over US$3bn in digital infrastructure investments to date,” he said.

The data center market is projected to reach $30.47 billion by 2030 in the SEA region, a significant jump from the $13.71 billion recorded for 2024. According to Fortune Business Insights, the global data center market was valued at $242.7 billion last year and is projected to grow to $269.7 billion this year and $584.8 billion by 2032.

Damac spearheads data center developments in Indonesia and beyond

The Jarkata data center project comes as Indonesia is seen as a high-potential market within the SEA region. Yet, it faces a digital infrastructure gap, rising latency challenges, and limited hyperscale readiness. This project is also seen as an answer to Indonesia’s growing demand for scalable and energy-efficient infrastructure.

Now, by targeting a Power Usage Effectiveness (PUE) of 1.32, this project will enhance energy efficiency in line with Edgnex’s global sustainability standards.

The Damac Group is making significant investments towards digital infrastructure not only within the SEA region but in some parts of the world. The company pledged $20 billion for data center projects in the US as it makes a strategic entry into the world’s largest economy.

As for the Jarkata project, it builds on the firm’s growing presence in Malaysia, Thailand, and other SEA markets.

“Leveraging our expertise in real estate and data centres, we aim to deliver best-in-class infrastructure that supports the next wave of cloud and AI growth, helping further to position the US in the technology and global data ecosystem,” Sajwani has previously explained.

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