Real estate private equity firm Gaw Capital Partners and Indonesian developer Sinar Primera are building a data center in Batam, Indonesia.

The two companies announced a strategic partnership this week to develop a single-story 6MW building at the Nongsa Digital Park; the first phase is due to go live in Q4 2024.

Gaw batam
– Gaw Capital Partners

Gaw will be the primary investor, with Sinar Primera acquiring a minority shareholder stake in the property and taking on the role of development manager for the project.

Kok Chye Ong, managing director and head of IDC platform, Asia (Ex-China) of Gaw Capital said: “We are thrilled to partner with Sinar Primera for this significant IDC project in Batam. Sinar Primera’s commitment to driving the new economy real estate industry forward aligns perfectly with our vision, and their extensive experience and industry knowledge complement Gaw Capital’s investment capabilities perfectly.”

Hong Kah Jin, head of Sinar Primera Group, added: “We are excited to join forces with Gaw Capital Partners for this data center project.

"The collaboration allows us to combine our development expertise and local proficiency in the Indonesian market with Gaw Capital’s global real estate experience, paving the way for a cutting-edge data center facility that will meet the increasing demand for advanced digital infrastructure in Batam and the surrounding region.”

Batam is the largest city in the Riau Islands and is located close to Singapore, on the opposite side of the Singapore Strait. Nongsa Park, developed by Citramas Group, has been granted special economic zone (SEZ) status, which provides beneficial tax tariffs. Telkom Indonesia & Etisalat, as well as GDS, are also looking at developing in Nongsa Park.

Gaw already previously had a project in Nongsa Park: Its Data Center First venture broke ground on its debut data center in the park in July 2022.

Update: Gaw reached out to say it is no longer working with DCF, saying the company had gone out of business.

"That’s why we entered new partnership with Sinar Primera," a Gaw spokesperson said.

DCD has reached out to DCF CEO Wong Ka Vin for more information.

Original story resumes:

DCF's planned facility, Nongsa One, was expected to be completed by the end of this year. Sitting on 2.57 hectares of land, Phase 1 of the 30MW campus will be a two-story building offering 6MW of critical IT load. The building will have a gross floor area of 6,085 sqm (65,500 sq ft) across four data halls.

DCF was set up in partnership with Gaw in 2021 and was led by industry veteran Wong Ka Vin. It announced plans for a data center in Batam in October 2021. According to its now-offline website, DCF also had projects in the planning stage in Jakarta, Indonesia; Manila; Philippines; Ho Chi Minh City, Vietnam; and Bangkok, Thailand.

Hong Kong-based Gaw has previously invested in data centers through a joint venture with Centrin in China, and recently broke ground on data center joint venture with A3 Capital in Malaysia.

It has also announced investments and/or projects in Tokyo, South Korea, and Vietnam. Gaw was reportedly interested in bidding for Global Switch, but didn’t make the final bidders' shortlist.