Oracle to open first cloud center in Indonesia

Oracle Corporation will partner with Singapore-based DayOne Data Centers to establish its first cloud services center in Indonesia.

The facility will be located at Nongsa Digital Park on Batam Island.

Oracle will lease data centers from DayOne, which can support facilities with at least 120 megawatts of power.

Oracle is expected to be the sole tenant at the leased plots.

Nongsa Digital Park has become a hub for data centers due to its free-trade zone status and proximity to Malaysia and Singapore.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Oracle’s expansion follows systematic investment pattern across Southeast Asia

Oracle’s partnership with DayOne in Indonesia represents the latest move in a calculated regional expansion strategy that prioritizes strategic locations.

The company already operates two cloud computing centers in Singapore and recently committed $6.5 billion to build cloud infrastructure in Malaysia 1.

This systematic approach of establishing multiple regional data centers allows Oracle to create a network of interconnected facilities that can serve customers across Southeast Asia while managing data sovereignty requirements.

Indonesia joins Singapore and Malaysia in Oracle’s Southeast Asian footprint, reflecting a broader industry trend where tech giants establish complementary facilities across neighboring countries rather than concentrating in a single location.

The investment pattern demonstrates Oracle’s long-term commitment to the region, competing with other cloud providers like Google, which recently announced a $1 billion investment in data centers in Thailand 1.

2️⃣ Strategic border locations emerging as data center hubs

Batam’s selection for Oracle’s Indonesian cloud center highlights the growing importance of strategic border locations that offer economic advantages while maintaining proximity to major commercial centers.

The Indonesian island’s free-trade zone status and closeness to Singapore make it particularly attractive, similar to how Johor (Malaysia) has emerged as a data center hotspot near Singapore with around 30 projects 2.