Jakarta, INTI - Indosat announced Zankore by Indosat, a collaborative initiative involving Indosat Ooredoo Hutchison, Ooredoo Group, Nokia, and NVIDIA to build Southeast Asia's largest AI Factory in Indonesia.
Zankore is an artificial intelligence (AI) computing infrastructure targeted to reach a capacity of up to 1 gigawatt (GW) within the next three years. It is expected to serve as the foundation for developing and delivering various AI services for both domestic and regional markets.
Minister of Communication and Digital Affairs Meutya Hafid welcomed the investment commitment made through the collaboration of Indosat Ooredoo Hutchison, Ooredoo Group, Nokia, and NVIDIA. She noted that the partnership among these four global technology companies demonstrates growing international confidence in Indonesia's digital economic prospects.
"The government welcomes the commitment of these four global technology companies to build an AI Factory in Indonesia. This investment reflects rising global confidence in the future of Indonesia's digital economy while strengthening the country's position as a destination for high-value technology investments," said Meutya in Jakarta on Friday, August 7, 2026.
The Concept of AI Factory
AI Factory is a large-scale computing infrastructure designed to provide the processing capacity needed for both the development and operation of various AI services.
This concept differs from conventional data centers by integrating the entire AI ecosystem chain into a single infrastructure. Its components include data centers supporting AI computing needs, high-performance GPUs, networking, data storage systems, GPU-as-a-Service, orchestration, workload management, and end-to-end AI operations.
Constructing an AI Factory on such a large scale requires significant investment. International studies estimate that the investment required for end-to-end AI computing infrastructure is around USD 50 million per megawatt (MW) of capacity. With a targeted capacity of 1 GW (or 1,000 MW), the project has the potential to become one of the largest AI infrastructure investments ever announced in Southeast Asia.
Initial Phase in 2027
The initial phase of the AI Factory’s construction is scheduled to begin in the first half of 2027 in Batang, Central Java, with a capacity of approximately 200 MW. This capacity will subsequently be increased in stages until it reaches the target of 1 GW.
In addition to providing computing infrastructure, Zankore will serve as the development and hosting site for Sahabat-AI, an Indonesian open-source Large Language Model (LLM) with a capacity of 70 billion parameters.
Sahabat-AI is designed to support multiple languages, including Indonesian, Javanese, Sundanese, Balinese, and Batak. The platform will also provide Token-as-a-Service capabilities to broaden access to AI computing for the general public, MSMEs, government ministries and agencies, and application developers.
Meutya views this investment as a significant milestone in strengthening Indonesia's digital competitiveness. She noted that the project focuses not only on building a data center but also on establishing a national AI ecosystem that encompasses computing capacity, AI services, and language model development applicable across various sectors.
"What is being built is not merely a data center or computing infrastructure. It is the foundation of a comprehensive national AI ecosystem, spanning computing capacity and AI services to the development of Indonesian language models that can be utilized by various sectors. The presence of this AI Factory will strengthen Indonesia’s position as a regional AI hub, as it is capable of meeting both national and regional demands," she stated.
Conclusion
Indosat announces Zankore by Indosat, in collaboration with Ooredoo Group, Nokia, and NVIDIA, to build Southeast Asia's largest AI Factory in Indonesia. The project’s initial phase will be in Batang, Central Java, in the first half of 2027 at a capacity of approximately 200 MW. It is designed as an end-to-end AI computing infrastructure encompassing data centers, high-performance GPUs, networking, storage, and GPU-as-a-Service offerings. Zankore will also develop and host Sahabat-AI, an Indonesian open-source Large Language Model (LLM) with 70 billion parameters that supports Indonesian as well as regional languages such as Javanese, Sundanese, Balinese, and Batak.
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