Jakarta, INTI - NVIDIA's planned AI Factory in Batam is expected to generate between US$25 billion and US$30 billion in economic value during its first six years of operation, making it one of the largest digital infrastructure investments ever announced in Indonesia.
As the project's primary technology partner, NVIDIA Corporation is expected to play a central role in its development. The company's stock performance on Wall Street is also closely watched by investors as a benchmark for Indonesia's listed digital infrastructure companies.
360 MW AI Facility with 170,000 GPUs
The planned NVIDIA DSX AI Factory will feature approximately 360 MW of power capacity and is designed to accommodate up to 170,000 next-generation GPUs, with phased deployment beginning in 2027.
NVIDIA, together with Arm and Danantara, has also committed to training and recruiting 15,000 Indonesian engineers to support the country's growing AI, semiconductor, and data center industries.
The project gained further momentum following the inauguration of the Nongsa Changi Cable (NCC) by Coordinating Minister for Economic Affairs Airlangga Hartarto on July 20, 2026. The new subsea fiber-optic cable connecting Batam and Singapore enhances the region's digital connectivity and strengthens Batam's competitiveness as a regional digital hub alongside emerging AI corridors in Malaysia and Vietnam.
Indonesia has also joined 29 other countries as a founding member of the World Artificial Intelligence Cooperation Organization (WAICO), reinforcing the country's role in shaping global AI governance and signaling its ambition to become more than Southeast Asia's largest digital consumer market.
Market Attention Shifts to Indonesian Digital Infrastructure Companies
Investor attention has also turned to Indonesian listed companies that could potentially benefit from the AI Factory ecosystem.
Following a 2.21% decline in NVIDIA's share price to US$202.81, after Apple regained the position as the world's most valuable company, market participants continue to monitor how global technology sentiment may influence Indonesia's digital infrastructure sector.
Companies such as PT Telkom Indonesia (TLKM), Indosat (ISAT), Smartfren (FREN), and PT Indoritel Makmur Internasional (DNET) are viewed as potential beneficiaries due to rising demand for connectivity, cloud infrastructure, and data center capacity. Meanwhile, PT Amman Mineral Internasional (AMMN) has also attracted attention for its strategic role in supplying minerals essential to the semiconductor industry.
Among these companies, DNET is considered to have the most direct exposure to the data center business, while TLKM offers nationwide connectivity infrastructure. AMMN represents the strategic mineral supply chain supporting semiconductor manufacturing.
However, as of now, no official confirmation has been announced regarding direct contracts or partnerships between these publicly listed companies and the Batam AI Factory project.
Looking ahead, investors are expected to closely monitor several upcoming milestones, including the scheduled deployment of the first GPUs in 2027, the official groundbreaking timeline from the Batam Indonesia Free Zone Authority (BP Batam), and further details regarding Danantara's investment contribution.
These announcements are expected to become key catalysts for Indonesia's digital infrastructure and AI ecosystem as the project moves toward implementation.
Conclusion
NVIDIA's AI Factory project has the potential to position Batam as a leading AI and digital infrastructure hub in Southeast Asia. Backed by large-scale investments, advanced computing capacity, and talent development initiatives, the project is expected to accelerate Indonesia's AI ecosystem while creating new opportunities across the data center, cloud, semiconductor, and digital infrastructure industries.
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