Oracle to Expand Cloud Services in Indonesia with DayOne Partnership

Oracle is partnering with DayOne Data Centers to establish its first cloud services centre in Indonesia, leasing data centres at Nongsa Digital Park on the island of Batam. The centre will have at least 120MW of power and is expected to require a capital investment of at least $1.2bil. Oracle's expansion confirms earlier reports of discussions to establish a cloud services centre in Indonesia.

Title: Oracle Establishes Cloud Presence in Indonesia

Oracle, the American software company, has quietly established a cloud presence in Indonesia by partnering with DayOne Data Centers. According to Bloomberg, Oracle will lease data centers operated by DayOne Data Centers Singapore, the recently separated international unit of Chinese data center operator GDS [1]. The Oracle Indonesia North (Batam) cloud region is now listed as live on the company's website, located in Nongsa Digital Park on the island of Batam [1].

Nongsa Digital Park, developed by Indonesian conglomerate Citramas Group, was granted special economic zone status in July 2020, providing tax incentives for data center businesses. The park is home to several other data centers, including a facility established by Hong Kong private equity firm Gaw Capital Partners in February [1].

The establishment of Oracle's cloud services center in Indonesia is a significant move, as the country is a fast-growing data center market. Microsoft and Google already operate cloud regions in Indonesia, and colo giant Digital Realty recently formed a joint venture with Bersama Digital Infrastructure Asia for an expansion [1]. Most of Indonesia’s data centers are clustered around Jakarta, located on the island of Java [1].

The partnership with DayOne Data Centers will see Oracle lease data centers capable of supporting facilities with at least 120 megawatts of power. A 120 megawatt data center typically requires a capital investment of at least US$1.2 billion (RM5.1 billion), depending on factors like location, design tier, and land costs [2]. Oracle's expansion confirms earlier reports of discussions to establish a cloud services center in Indonesia [2].

Oracle's recent deal with OpenAI to provide cloud services, valued at approximately $30 billion annually, underscores the company's commitment to the cloud market [1]. This deal is part of OpenAI's Stargate initiative, which aims to invest $500 billion in AI infrastructure [1].

The move by Oracle to establish a cloud services center in Indonesia aligns with the global trend of investing in data centers to support the anticipated growth in AI services. Major US technology companies, including Meta Platforms and Google, are investing in data centers across Asia, with much of this investment directed towards countries with more developed tech ecosystems such as Malaysia and Singapore [2].

References
[1] https://www.datacenterdynamics.com/en/news/oracle-establishes-cloud-presence-in-indonesia/
[2] https://theedgemalaysia.com/node/762117