Dubai-based Damac Group’s subsidiary Edgnex Data Centers has announced a US$2.3 billion investment to develop an AI-focused data center in Jakarta.

The facility will have a capacity of 144 megawatts (MW) and is scheduled to commence operations in December 2026. This project marks Edgnex’s second data center in Indonesia, following the completion of land acquisition in March.

The new center will feature high-density AI racks and aims for a Power Usage Effectiveness (PUE) of 1.32 to align with global energy efficiency standards.

Edgnex’s first data center in Jakarta, which has a planned capacity of 19.2 MW, is expected to be operational by the third quarter of 2026.

The company seeks to address the digital infrastructure gap in Southeast Asia and targets an overall operational capacity of over 300 MW in the region.

Currently, Edgnex operates in 11 countries, including Thailand, Malaysia, and Indonesia, as it continues to expand its presence in key Southeast Asian markets.

🔗 Source: Katadata

🧠 Food for thought

1️⃣ Southeast Asia emerges as a global AI data center hotspot amid digital economy boom

Edgnex’s $2.3 billion investment in Jakarta is part of a massive regional data center expansion trend, not an isolated development.

The Southeast Asia data center market is projected to grow from US$13.71 billion in 2024 to $30.47 billion by 2030, representing a 14.23% CAGR driven by supportive government policies and rapid infrastructure development1.

By 2025, the region is expected to add 3GW of power capacity from new data centers, with total investments exceeding $37 billion and adding 8GW of capacity2.

This surge reflects Southeast Asia’s rapidly expanding digital economy, which is projected to grow from US$194 billion in 2022 to US$330 billion by 2025, requiring US$40-$60 billion in digital infrastructure investments over the next five years3.

Major tech companies including Microsoft, Nvidia, and Google are similarly investing heavily in AI data centers across the region, highlighting Indonesia’s strategic importance in this digital transformation4.

2️⃣ Data sovereignty drives localization of AI infrastructure in Indonesia

Edgnex’s investment represents a response to Indonesia’s growing emphasis on data sovereignty and localization requirements.