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Edgnex to build $2.3B AI data center in Indonesia

Edgnex Data Centers is a global digital infrastructure company backed by UAE-based Damac Group

In sum – what to know:

Edgnex expands in Indonesia – Backed by Dubai’s Damac Group, Edgnex will invest $2.3 billion in a 144MW AI-ready data center in Jakarta, marking one of Southeast Asia’s largest AI infrastructure projects.

Pushing AI capacity in SEA – The facility will deploy high-density AI racks and target a PUE of 1.32, addressing Indonesia’s infrastructure gaps and enabling low-latency, energy-efficient AI and cloud services.

Regional digital ambitions – This is Edgnex’s second project in Jakarta and part of its broader strategy to reach over 300 MW capacity across Southeast Asia by 2026, including builds in Malaysia and Thailand.

Edgnex Data Centers has announced a new AI-focused data center in Jakarta, Indonesia, with a projected valued of $2.3 billion, the company said in a release.

The new facility will be the company’s second data center in the Asian country and is set to become one of the largest AI-dedicated data centers in Southeast Asia, the firm said.

Edgnex Data Centers is a global digital infrastructure company backed by the Damac Group, which is headquartered in Dubai, United Arab Emirates (UAE).

The site where the new AI facility will be located was acquired in March 2025 and is now in early construction phases. Phase one is expected to go live by December 2026. Once fully developed, the AI data center will have a projected capacity of 144 megawatts and deploy high-density racks to support AI workloads.

The announcement comes amid growing AI adoption across Southeast Asia and increasing demand for infrastructure capable of handling advanced computing needs. Indonesia in particular faces challenges such as limited hyperscale readiness, infrastructure gaps and rising latency, making Jakarta a key location for digital infrastructure investment, according to the data center operator.

According to Damac Group founder Hussain Sajwani, the new Jakarta facility is part of a broader strategy to expand across Southeast Asia. Edgnex has committed more than $3 billion in digital infrastructure investments across the region to date.

The company noted that the new AI facilityis designed for improved energy efficiency, with a targeted power usage effectiveness (PUE) of 1.32.

The planned investment follows Edgnex’s earlier announcement of a separate 19.2MW facility in Jakarta’s MT Haryono area, which is one of the city’s central data interconnection zones. That first site is scheduled for completion in the third quarter of 2026 and will serve cloud service providers, edge deployments as well as AI workloads.

Edgnex’s previously said that it expected to reach more than 300MW of operational capacity across Southeast Asia by 2026, with active projects in Indonesia, Malaysia, Thailand and other regional markets.

In April, the data center operator had completed the acquisition of Finnish data center developer Hyperco.

The pair had inked a partnership which will see Edgnex acquire Hyperco. The financial terms of the transaction had not been disclosed.

Hyperco operates data centers in Finland and across the Nordic countries, offering colocation space and undertaking build-to-suit projects.

“This collaboration supports our goal of expanding our operations in the Nordics and Europe,” said Hussain Sajwani, founder of Damac Group. “Hyperco has a world-class team with a deep understanding of the Nordic market and shares our vision of developing strong partnerships and investing in and developing world-class digital infrastructure for our clients.”

In January, Damac had said it would invest $20 billion in data centers in the U.S.

At that time, U.S. president Donald Trump announced the company would be investing in sites in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan and Indiana.

Following this announcement, Damac said in a release that it will deliver data centers totaling 2GW of capacity over the next four years.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.