Dubai-based Damac Group, via its subsidiary Edgnex Data Centers, has announced a significant Damac AI data center development in Jakarta. Valued at approximately US $2.3 billion (around Rp 37 trillion), this next-generation facility is set to become one of Southeast Asia’s largest AI-focused data centers. With advanced, high-density AI racks, sustainability targets, and wide regional ambitions, this investment promises to reshape Indonesia’s digital infrastructure landscape.

Project Overview And Investment Scale

Damac Group has committed around US $2.3 billion, roughly Rp 37 trillion, to build a state-of-the-art Damac AI data center in Jakarta. The site, acquired in March 2025, is currently under early construction, and phase one is expected to commence operations by December 2026. This marks Damac’s second AI-focused data center project in Indonesia, after the earlier 19.2 MW facility at MT Haryono.

The Jakarta facility is designed to deliver 144 MW of capacity, deploy high-density AI racks, and target world-class efficiency with a PUE of 1.32.

Technological Advancements And Sustainability

With AI workloads increasing, this Damac AI data center emphasizes energy-efficient, high-performance systems:

• High-density AI racks to support intensive computing needs.
• PUE of 1.32, reflecting global sustainability standards.
• A robust 144 MW capacity, catering to AI- and cloud-driven traffic.

This positions the center as a pivotal node for AI, cloud services, and data-intensive digital infrastructure in Southeast Asia.

Regional Expansion Strategy And Infrastructure Gaps

Edgnex Data Centers by Damac is targeting a cumulative capacity of over 300 MW across Southeast Asia by 2026, with operations in Indonesia, Thailand, and Malaysia. The Jakarta facility addresses several pressing needs:

• Bridging digital infrastructure gaps and latency challenges.
• Enabling local edge computing and cloud provisioning, aligning with Indonesia's digital economy goals .
• Strengthening digital resilience and sovereignty for data services .

Earlier, Edgnex also launched a 19.2 MW colocation center at MT Haryono, aimed for Q3 2026 completion

Damac Group Profile And Strategic Vision

Damac Group is a global conglomerate headquartered in Dubai, founded by Hussain Sajwani. With net worth over US $10 billion, it’s known for luxury real estate and diversified into digital infrastructure via Edgnex. Edgnex operates across 11 countries, combining expertise in real estate and technology to build AI-grade sustainable data centers .

Hussain Sajwani described this Indonesia center as part of bridging the "digital divide" and supporting a sustainable digital future in fast-growing Southeast Asian economies. Indonesia’s strong economic growth makes it an ideal location for digital infrastructure scale-up .

Market Implications And Competitive Context

This major Damac AI data center project intensifies competition in Indonesia’s data infrastructure landscape. It closely follows other large-scale developments by PT DCI and Equinix-Astra.

Market intelligence firm Mordor cites rapid growth: data center capacity in Indonesia is forecast to exceed 2,110 MW by 2030, with a 16.7% CAGR. This trend is fueled by booming cloud adoption, edge needs, and AI deployments across sectors including finance, e-commerce, and healthcare.

Challenges And Regulatory Considerations

Despite broad support, challenges remain:

• Permitting and land use complexity in Indonesia may slow phases .
• Energy procurement and sustainability initiatives will require tight coordination with local authorities and power suppliers .
• Balancing rapid expansion with environmental stewardship is crucial, given global sustainability standards, energy efficiency goals, and corporate responsibility .

Future Roadmap And Strategic Outcomes

Once fully operational, the Jakarta Damac AI data center will deliver:

• A boost in AI and cloud capacity, enabling local innovation and reduced latency
• Energy-efficient infrastructure that complies with global benchmarks
• Catalytic effects on digital ecosystem development, including spinoff services and startups
• A meaningful contribution to Indonesia’s journey toward becoming a digital-first economy

Conclusion

The Damac AI data center project represents a strategic leap forward in Indonesia’s tech infrastructure. With significant investment, advanced sustainability standards, and regional ambitions, Damac and Edgnex are setting a high-water mark for Southeast Asia’s digital transformation. As construction progresses through 2026, all eyes will be on how this project reshapes market dynamics, regulatory approaches, and Indonesia’s digital future.