APAC data center developer DayOne has secured a loan to develop a campus in Indonesia.

Singapore banks DBS and UOB this week announced they have jointly provided an IDR 6.7 trillion ($412.1m) loan facility to DayOne to finance the development of a new data center campus in Batam, Indonesia.

Proceeds of the loan will be used to develop and operate three data centers located in the Nongsa Digital Park (NDP). The first phase is due live by the end of 2025. The campus will have a combined IT load capacity of around 72MW.

Batam is the largest city in the Riau Islands and is located close to Singapore, on the opposite side of the Singapore Strait. GDS spin-out DayOne acquired land in Batam in November 2021.

Jamie Khoo, CEO of DayOne, said: “This landmark financing — the largest rupiah-denominated facility ever secured for a data centre development — is a strong endorsement of DayOne’s proven ability to deliver digital infrastructure at speed and scale. We are proud to contribute to Indonesia and Southeast Asia’s digital growth with high-performance infrastructure that meets the evolving needs of our customers.”

The project, jointly developed by DayOne and the Indonesia Investment Authority (INA), is backed by the largest rupiah-denominated financing agreement ever secured for such a development. INA is Indonesia’s sovereign wealth fund, wholly owned by the Government of Indonesia, and partnered with DayOne for the development in 2023.

Amit Sinha, group head of telecommunications, media & technology, Western MNCs and digital economy at DBS Bank, said: “This landmark transaction is a strategic investment in the future of Southeast Asia’s digital economy. Expanding the region’s data center capacity will accelerate the digital transformation of businesses within the region as they embrace solutions such as artificial intelligence, cloud services, and real-time processing.”

DayOne is the international unit of Chinese data center operator GDS. The company rebranded its Singapore-based international unit at the beginning of this year and has secured outside investment from the likes of SoftBank Vision Fund, Citadel CEO Kenneth Griffin, Coatue Management, and Baupost Group.

DayOne’s portfolio currently comprises approximately 480MW of data center capacity in service and under construction and an additional 590MW held for future development across sites in Hong Kong, Singapore, Malaysia (Johor), Indonesia (Batam), and Japan (Tokyo). The company recently broke ground on a site in Thailand.

Harapman Kasan, Wholesale Banking director, UOB Indonesia, said, “The partnership with DayOne and INA – in building digital infrastructure that powers a low-carbon, digital economy – aligns with Indonesia’s ambition to become a regional digital hub. In addition, Batam plays a pivotal role in serving as a key gateway to Singapore.”

The likes of Gaw, Singtel, BW Digital, Telin, and Princeton Digital Group are also developing in the Nongsa Park, which is set to see multiple subsea cables land in the area.