EDGNEX Data Centres by DAMAC, the digital infrastructure subsidiary of the UAE-based DAMAC Group, announced on Tuesday a USD2.3 billion investment in a new AI-focused data centre in Jakarta, Indonesia, further signalling rising competition in South East Asia’s booming data infrastructure landscape.
The project will be EDGNEX’s second data centre in Indonesia, and one of South East Asia’s largest AI-dedicated facilities to date. Once fully operational, it is expected to deliver up to 144 megawatts (MW) of capacity, supporting high-density artificial intelligence workloads. Construction is now underway, with phase one scheduled for completion by December 2026.
Hussain Sajwani, founder of DAMAC Group, said in a statement: “This is our second project in Indonesia, and this development reinforces our commitment to bridging the digital divide in fast-growing markets across South East Asia. We are proud to build what will become one of South East Asia’s most advanced, sustainable data centres to power the next wave of innovation and digital growth.”
Infrastructure push meets digital divide
South East Asia continues to witness a surge in cloud computing, generative AI experimentation, and e-commerce-driven data needs. Yet, Indonesia – the region’s most populous nation – still grapples with a shortfall in hyperscale-ready infrastructure, limited fibre backhaul, and latency concerns, especially outside major cities.
Market research firm Mordor Intelligence estimates the Indonesian data centre market will grow at a compound annual growth rate (CAGR) of 16.73 per cent, reaching 2,110 MW by 2030. Industry observers say Jakarta’s positioning as a digital hub is being bolstered by a wave of foreign direct investments from both regional hyperscalers and Gulf-backed infrastructure players.
The new facility will be built on land acquired by DAMAC in March this year. According to the company, it will target a Power Usage Effectiveness (PUE) of 1.32, aligning with international benchmarks for energy efficiency, and incorporate AI-optimised rack configurations designed to serve large-scale compute demand.
Regional expansion accelerates
The announcement marks another milestone in EDGNEX’s regional expansion strategy, which targets over 300 MW of operational capacity in Southeast Asia by 2026. It follows the company’s earlier 2024 commitment to build a 19.2 MW facility at MT Haryono in central Jakarta, one of the city’s most interconnected data hubs. That project is expected to be ready by Q3 2026, catering to cloud service providers, edge nodes, and emerging AI deployments.
Beyond Indonesia, EDGNEX is also expanding across Thailand, Malaysia, and other key growth markets in Asia, amid growing demand for sovereign cloud solutions, data localisation compliance, and carbon-conscious infrastructure. The company reports that it has already committed over USD3 billion in digital infrastructure investments across South East Asia to date.
As stated by DAMAC’s founder, “The scale of AI workloads demands a new class of infrastructure. This (Jakarta) project is part of our broader push across SEA….”
While some regional analysts note that Indonesia’s permitting frameworks and power procurement mechanisms still pose challenges for rapid hyperscale development, others argue that aggressive entries by firms like EDGNEX could catalyse policy innovation and competitive pricing in the coming years.
Market outlook
As of 2025, EDGNEX operates in 11 countries, including the UAE, the US, Saudi Arabia, Turkey, Finland, and Spain, with a projected global capacity exceeding 4,000 MW. It plans to deliver over 55 MW in the Middle East by the end of this year.
The entrance of Gulf-backed digital infrastructure giants into the Indonesian and South East Asian data centre markets adds further momentum to what has become a strategic convergence between Middle Eastern capital and ASEAN’s digital economy aspirations.
With the rise of AI and real-time data processing needs across finance, e-commerce, healthtech, and logistics, industry stakeholders expect regional infrastructure demand to far outpace supply through to 2030, intensifying the race for location, power, and low-latency connectivity. 