Oracle Expands into Indonesia with Data Centre Lease
Oracle is set to expand into Indonesia by leasing data center space from DayOne Data Centers, marking its first cloud services operation in the country. The move deepens Oracle’s relationship with DayOne, a regional player with ByteDance as its biggest client.
DayOne, based in Singapore and a spin-off from Chinese data center company GDS Holdings, serves international customers. ByteDance is its top customer, with Oracle following closely behind.
Oracle will take over data center plots at Nongsa Digital Park on Indonesia’s Batam island, a tech hub attracting operators due to its free-trade zone status and proximity to Singapore and Malaysia. The leased sites could support at least 120 megawatts of capacity, indicating a significant investment.
DayOne’s sites will be exclusively for Oracle, with no other tenants, according to sources. Both companies have not responded to requests for comment.
Oracle already operates two cloud data centers in Singapore and is building another in Malaysia. Earlier this year, it established an AI Center of Excellence in Singapore and announced plans to train 10,000 people in digital skills by 2027.
US tech firms are increasing their presence in Asia to support AI infrastructure needs. Meta and Google are investing in countries like Singapore and Malaysia, while Salesforce committed $1 billion to Singapore and Oracle pledged $6.5 billion for cloud infrastructure in Malaysia.
Oracle’s collaboration with OpenAI under the Stargate initiative is part of a project to build AI-focused data centers globally, including in the US and backed by partners like SoftBank.
The global market for AI products and services is expected to approach $1 trillion by 2027, leading tech companies to scale their infrastructure, especially in Asia where cloud demand and AI adoption are rapidly increasing.
(Photo by BoliviaInteligente)
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