DBS and UOB Provide $411 Million Loan for Major Data Centre Project in Indonesia
2 Sources
2 Sources
[1]
DBS, UOB provide $411 million loan to DayOne-INA data centre project in Indonesia
SINGAPORE, June 5 (Reuters) - Singaporean banks DBS Group (DBSM.SI), opens new tab and United Overseas Bank (UOBH.SI), opens new tab said on Thursday that they had jointly provided a 6.7 trillion rupiah ($411 million) loan to finance a data centre campus in Indonesia. DBS and UOB are Southeast Asia and Singapore's biggest and third largest lender by assets respectively. The banks said in a statement that the loan for the project, to be jointly developed by Singapore-based data centre company DayOne and the Indonesia Investment Authority (INA), was the largest ever rupiah-denominated data centre financing deal. The funding comes at a time when investor appetite for data centres is growing in Asia, driven by demand for artificial intelligence and cloud computing-based services. The data centre project also marks INA's first investment in the sector and an expansion of DayOne in Indonesia, according to the statement. INA is Indonesia's sovereign wealth fund, wholly owned by the Indonesian government. Proceeds of the loan will be used to develop and operate three data centres located in the Nongsa Digital Park in Batam, according to the statement. Upon completion by end-2025, the campus will have a combined capacity of around 72 megawatts, which will account for around 5% of Indonesia's projected data centre capacity of 1.41 gigawatts by 2029, according to the statement. ($1 = 16,285.0000 rupiah) Reporting by Yantoultra Ngui Editing by Mark Potter Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Asian Markets
[2]
DBS, UOB provide $411 million loan to DayOne-INA data centre project in Indonesia
SINGAPORE (Reuters) -Singaporean banks DBS Group and United Overseas Bank said on Thursday that they had jointly provided a 6.7 trillion rupiah ($411 million) loan to finance a data centre campus in Indonesia. DBS and UOB are Southeast Asia and Singapore's biggest and third largest lender by assets respectively. The banks said in a statement that the loan for the project, to be jointly developed by Singapore-based data centre company DayOne and the Indonesia Investment Authority (INA), was the largest ever rupiah-denominated data centre financing deal. The funding comes at a time when investor appetite for data centres is growing in Asia, driven by demand for artificial intelligence and cloud computing-based services. The data centre project also marks INA's first investment in the sector and an expansion of DayOne in Indonesia, according to the statement. INA is Indonesia's sovereign wealth fund, wholly owned by the Indonesian government. Proceeds of the loan will be used to develop and operate three data centres located in the Nongsa Digital Park in Batam, according to the statement. Upon completion by end-2025, the campus will have a combined capacity of around 72 megawatts, which will account for around 5% of Indonesia's projected data centre capacity of 1.41 gigawatts by 2029, according to the statement. (Reporting by Yantoultra NguiEditing by Mark Potter)
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Singaporean banks DBS and UOB have jointly provided a $411 million loan to finance a data centre campus in Indonesia, marking the largest rupiah-denominated data centre financing deal to date.
Major Financing Deal for Indonesian Data Centre Project
In a significant move for Southeast Asia's tech infrastructure, Singaporean banks DBS Group and United Overseas Bank (UOB) have jointly provided a 6.7 trillion rupiah ($411 million) loan to finance a major data centre campus in Indonesia 1. This deal marks the largest ever rupiah-denominated data centre financing agreement, highlighting the growing importance of digital infrastructure in the region 12.
Source: Reuters
Project Details and Stakeholders
The data centre project is a collaborative effort between Singapore-based data centre company DayOne and the Indonesia Investment Authority (INA), Indonesia's sovereign wealth fund 1. The loan will fund the development and operation of three data centres located in the Nongsa Digital Park in Batam 1. Upon completion by the end of 2025, the campus is expected to have a combined capacity of approximately 72 megawatts 2.
Strategic Importance and Market Impact
This project is set to make a significant impact on Indonesia's digital landscape. The 72-megawatt capacity is projected to account for around 5% of Indonesia's total data centre capacity by 2029, which is estimated to reach 1.41 gigawatts 2. For INA, this marks its first investment in the data centre sector, while for DayOne, it represents an expansion of its operations in Indonesia 1.
Driving Factors and Industry Trends
The substantial investment in data centre infrastructure comes at a time when investor appetite for such facilities is growing rapidly across Asia 1. This surge in demand is primarily driven by the increasing need for artificial intelligence and cloud computing-based services 2. The involvement of major banks like DBS and UOB, which are the largest and third-largest lenders by assets in Southeast Asia and Singapore respectively, underscores the financial sector's confidence in the growth potential of digital infrastructure 1.
Implications for Regional Development
This project not only boosts Indonesia's digital capabilities but also strengthens Singapore's position as a key player in Southeast Asia's tech ecosystem. The collaboration between Singaporean financial institutions and Indonesia's sovereign wealth fund demonstrates the increasing regional cooperation in developing critical infrastructure 12. As data centres form the backbone of modern digital economies, this investment is likely to have far-reaching effects on Indonesia's technological advancement and economic growth.
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