Dubai's EDGNEX to Invest US$2.3bn in Indonesian Data Center Construction

TEMPO.CO, Jakarta - The Ministry of Communication and Digital (Komdigi) revealed that a Dubai-based digital infrastructure company, EDGNEX, will invest US$2.3 billion, or around Rp37 trillion, to build a large-scale data center in Indonesia.

According to Komdigi Minister Meutya Viada Hafid, the investment is a vital part in accelerating national digital transformation. "EDGNEX presence sends a positive signal of a growing confidence within global investors in Indonesia's digital ecosystem," said Meutya in a written statement on Thursday, June 19, 2025.

EDGNEX investment will be used specifically to build modern data center infrastructure on a 12-hectare land in the Cikarang industrial area, West Java. The initial phase of the project is targeted to be completed by 2026, and construction will last until 2028. 

According to Komdigi, the national data center capacity at the beginning of Prabowo's term was at 180 megawatts (MW) and has now increased to 290 MW. Based on the monitored ready-to-build land data by the ministry, the national capacity is projected to soar to 900 MW by the end of 2025. 

She mentioned that the government will continue to open doors for new investment opportunities, considering the projected need for Indonesian data centers is estimated to reach 1.5 to 2 gigawatts (GW) in the next two years. If this target is achieved, Indonesia is said to have the potential to become the main digital data center in the Southeast Asian region.

"We hope that the level of investor confidence, both domestic and foreign, will continue growing to support a strong and inclusive national digital infrastructure ecosystem," she said.

According to the Golkar politician, every investment must have a social impact, not just capital injection. Komdigi encourages investments like EDGNEX to contribute to Indonesian society. "Including by supporting the digitalization of MSMEs and the utilization of artificial intelligence (AI) in the food, fisheries, and health sectors," she said.

Previously, Meutya also inaugurated an AI-based data center claimed to be the most advanced in Southeast Asia, specifically in Cibitung, West Java. According to her, the data center built by the local company, PT DCI Indonesia, indicates that domestic players also have high capacity and must continue to be supported.

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