Jakarta, INTI - Batam is rapidly transforming into one of Southeast Asia’s fastest-growing data center investment destinations. Since 2021, at least eight companies from China, Hong Kong, Singapore, and New Zealand have committed to developing data center projects on the island, with combined investment commitments exceeding IDR 130 trillion. Another six investors are reportedly preparing to enter the market.
The main hub of this growth is Nongsa Digital Park (NDP), a Special Economic Zone managed by PT Taman Resor Internet (Tamarin). The area currently hosts nine data center projects under development, while several additional projects are in the pipeline both inside and outside the zone.
The investment boom gained momentum after Singapore imposed a moratorium on new data center developments in 2019 due to land and power constraints. Located just 20 kilometers away, Batam quickly emerged as a strategic alternative alongside Johor, Malaysia.
Among the earliest major investors was Shanghai-based GDS Holdings, which entered Batam in 2021. Its international arm, DayOne, later secured USD 412 million to develop a three-building campus at NDP with a combined capacity of 72 MW. In April 2026, DayOne also signed Indonesia’s largest data center power agreement with PLN Batam, securing 511 MVA for a second facility in Kabil Industrial Tech Park.
Other major players followed. Singapore’s Princeton Digital Group (PDG) announced a 96 MW campus with investment approaching USD 1 billion, while BW Digital launched a 120 MW facility designed for enterprise, cloud, and AI workloads. Hong Kong-based Gaw Capital Partners also established multiple projects within NDP, including Golden Digital Gateway and Data Center First.
The largest commitment so far comes from PT Equator Gate System Batam (EGSB), a subsidiary of Shenzhen-listed Range Intelligent Computing Technology. The company plans to invest USD 5 billion (approximately IDR 88 trillion) in a 30-hectare data center development in Nongsa.
Despite these impressive commitments, realized investment remains relatively limited. According to Indonesia’s Ministry of Investment, actual investment in Batam’s data center and telecommunications sector during 2023–2024 reached only IDR 446.78 billion.
Infrastructure readiness remains a key challenge. The projects currently planned in Nongsa alone are expected to require around 550 MVA of electricity, while DayOne’s Kabil development adds another 511 MVA. Land availability is also becoming increasingly limited as demand continues to rise.
Government Project Falls Behind
While private-sector investment continues to accelerate, Indonesia’s National Data Center (PDN) project in Nongsa has stalled. Initially announced in 2021 with an investment commitment of IDR 2.32 trillion and backed by South Korean financing, the project was eventually canceled due to budget constraints following the 2024 cyberattack on the national data center system.
Telkom Builds a Domestic Presence
Indonesia’s Telkom Indonesia remains the only major domestic player in Batam’s data center landscape. Through its subsidiary NeutraDC, Telkom is developing a hyperscale facility in Kabil in partnership with Singtel’s Nxera and Medco Power Indonesia. The project carries an investment value of approximately IDR 1.4 trillion and is expected to exceed 60 MW of capacity when fully completed.
Batam’s strategic location is a major advantage. Supported by 14 international submarine cable systems, the island serves as a critical digital gateway connecting Indonesia with regional markets across Southeast Asia.
Investor interest continues to grow, with six additional investors from China, Japan, and the United States reportedly exploring opportunities in Nongsa. However, competition is intensifying as Johor Bahru has attracted more than 50 data center projects, including investments from global hyperscale operators such as Google, Amazon, Nvidia, and Alibaba.
Conclusion
Batam has emerged as a leading data center investment destination in Southeast Asia, attracting billions of dollars in commitments from global operators. However, sustaining this growth will depend on the island’s ability to address challenges related to power supply, land availability, and infrastructure readiness while competing with regional hubs such as Johor.
Read more: Indonesia Investment Authority (INA) Joins the Data Center Investment Trend