A view of a Nvidia logo at their headquarters in Taipei, May 31, 2023. Photo by Reuters
Indonesia is positioning Batam as a global-scale hub for artificial intelligence (AI) infrastructure, as the island industrial zone accelerates efforts to attract investment inflows for a major data center from international technology firms, according to the Batam Indonesia Free Zone Authority (BP Batam).
A flagship project driving this ambition is Indonesia’s first AI data center initiative led by Australia-based Firmus Technologies, in strategic partnership with U.S. chipmaker Nvidia and Singapore’s DayOne.
Under an eight-year cooperation agreement, the consortium will develop the Nvidia DSX AI Factory in Batam with a planned capacity of 360 MW.
Scheduled to begin operations in the first quarter of 2027, the facility is expected to deploy up to 170,000 Nvidia AI accelerator chips during 2027-2028, positioning Batam as home to one of the largest planned GPU clusters in Southeast Asia.
The mega project is estimated to generate procurement deals worth between US$25 billion and 30 billion over its first six years of operation.
Vice Chairwoman of BP Batam Li Claudia Chandra said the presence of Firmus Technologies, Nvidia and DayOne reflects more than just the investment in a data center, describing it as a strategic step to strengthen Batam’s and Indonesia’s position in the digital economic value chain as well as the global AI ecosystem.
She noted that the surge in digital technology sector highlights Batam’s competitive advantages, including its strategic location, infrastructure readiness, and supportive regulatory environment. Such multi-USD projects are expected to create multiplier effect for the local economy through generating high-skilled jobs, strengthening of the digital ecosystem, and promoting knowledge transfer.
