Indonesia-based Batam Free Trade Zone Authority (BP Batam) has confirmed an investment agreement for an AI data centre valued at $5bn.
The project will see the construction of a 30-hectare high-density AI facility in Batam’s Nongsa region, according to a report in state-owned Indonesian news agency ANTARA.
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The development is led by Equator Gate System Batam (EGSB) and backed by Chinese data centre provider Range Intelligent Computing Technology (RangeIDC).
The project marks RangeIDC’s first international expansion outside China. The company is listed on the Shenzhen Stock Exchange and is said to be among the largest data centre firms in its domestic market.
EGSB will serve as the local developer for the project, utilising Batam’s free trade zone status to facilitate implementation.
The data centre project is underpinned by a power purchase agreement signed between PLN Batam, a subsidiary of Indonesia’s state utility, and EGSB.
The agreement aims to secure a reliable electricity supply for the planned data centre, which will require significant power resources to support AI and digital operations.
BP Batam deputy head Li Claudia Chandra said: “AI data centre investments are a momentum to advance Batam’s transition to technology, innovation, and a digital-based economy.”
BP Batam investment deputy Fary Djemy Francis indicated the authority will apply a fast-track execution process to expedite project realisation.
Francis, has been quoted by ANTARA, as saying: “BP Batam provides investment certainty, service promptness, and regional readiness; while PLN Batam provides energy readiness. This collaboration showed Batam’s determination to be Indonesia’s AI and digital gateway with global connectivity.”
The project is expected to generate 700 to 800 new data centre and digital technology jobs, with recruitment to involve partnerships with local universities.
Furthermore, it is anticipated to attract further strategic technology industries, including cloud computing, semiconductors, and other AI services.
Francis said: “Batam will no longer develop as a manufacturing industry zone as it is transforming into an execution hub for the global digital industry.”
