EDGNEX invests USD $2.3 billion in Jakarta AI data centre

EDGNEX Data Centers by DAMAC has announced plans to develop a new AI-focused data centre in Jakarta, Indonesia, with a projected investment of USD $2.3 billion and a future capacity of 144 MW.

The development represents the second data centre project for EDGNEX in the Indonesian market. The company stated that following the completion of land acquisition in March 2025, the site has now entered the early phases of construction. The first phase of the new facility is expected to be operational by December 2026 and will feature high-density AI racks aimed at addressing the rising demand for data processing capability in the country.

This latest project positions itself as one of the largest AI-dedicated data centre initiatives in Southeast Asia to date. According to independent research from Mordor Intelligence, the Indonesian data centre market is forecast to expand at a compound annual growth rate of 16.73% and is expected to reach 2.11 thousand MW by 2030. Indonesia has been described as a high-potential market within Southeast Asia, yet it still faces issues such as digital infrastructure gaps, limited hyperscale readiness, and growing latency challenges.

Digital infrastructure focus

The new Jakarta facility is expected to play a key role in supporting Indonesia's transformation from an analogue to a digital economy powered by artificial intelligence-driven technology. It will also aim for a Power Usage Effectiveness (PUE) of 1.32, which EDGNEX said will significantly improve energy efficiency and aligns with the company's global sustainability benchmarks. The company is targeting a regional operational capacity of over 300 MW by 2026 across Southeast Asia.

"This is our second project in Indonesia, and this development reinforces our commitment to bridging the digital divide in fast-growing markets across Southeast Asia (SEA), such as Indonesia," said Hussain Sajwani, Founder of DAMAC Group. "We are proud to build what will become one of Southeast Asia's most advanced, sustainable data centers to power the next wave of innovation and digital growth. The scale of AI workloads demands a new class of infrastructure. This project is part of our broader push across SEA, where we have committed over USD 3 billion in digital infrastructure investments to date."

EDGNEX's second data centre in Jakarta builds on the company's established presence in other Southeast Asian markets, including Thailand and Malaysia. In 2024, the firm announced its first data centre in Indonesia, located at MT Haryono in Jakarta, with a planned capacity of 19.2 MW. That site is also aimed at serving the increasing requirements of cloud service providers, edge computing, and AI deployment. Phase one of the MT Haryono project is scheduled to be completed by the third quarter of 2026.

Regional expansion

The scale of the latest development reflects broader trends in technology infrastructure across Southeast Asia, where demand for scalable and energy-efficient facilities is being driven by adoption of new technologies and cloud-based services. According to EDGNEX, its regional goal is to achieve more than 300 MW of operational data centre capacity by 2026, underpinning digital growth in markets experiencing rapid increases in data usage and storage requirements.

The Jakarta facility's high-density AI racks are intended to accommodate the processing needs of artificial intelligence applications, which require specialised infrastructure to manage intensive computational workloads efficiently. The design also seeks to ensure lower environmental impact through achieving the stated PUE target, contributing to overall sustainability goals.

Indonesia's move towards a digital economy has created heightened demand for state-of-the-art infrastructure that supports both current needs and future growth. EDGNEX's investment in Jakarta, together with its ongoing regional expansion, is intended to address the growing needs of cloud providers, enterprise customers, and organisations deploying artificial intelligence solutions.