Digital Edge Commits $4.5 Billion to Build Indonesia’s Largest AI-Ready Hyperscale Data Center
Digital Edge is investing $4.5 billion to build the CGK Campus, a state-of-the-art, AI-ready hyperscale data center campus located in the GIIC Industrial Estate in Bekasi, West Java, Indonesia. According to Developing Telecoms, this marks the largest infrastructure investment to date for the company. The CGK Campus will deliver 500MW of IT capacity upon full development, with scalability to 1GW, making it one of the largest deployments in the region and a cornerstone for Indonesia’s rapidly expanding digital economy.
Massive Capacity and AI-Ready Design
The CGK Campus is designed for next-generation AI workloads, incorporating cutting-edge technologies such as direct-to-chip liquid cooling, recycled water systems, and renewable energy integration. These features target an annualized power usage effectiveness (PUE) of 1.25, positioning the facility as a benchmark for sustainability and operational efficiency in hyperscale environments.
Strategically located just 40km from Jakarta and less than 15km from other leading data center hubs, the campus aims to ensure low-latency connectivity for critical business districts while supporting Indonesia’s broader digital ecosystem. Phase one of construction will include three buildings. The first is scheduled to go live in Q4 2026, followed by the second in Q1 2027 and the third in Q2 2027, creating a phased deployment plan to meet growing demand.
Reinforcing Indonesia’s Digital Transformation
The development comes as Indonesia’s digital landscape surges, driven by increasing AI adoption and a growing demand for hyperscale and carrier-neutral infrastructure. The CGK Campus will anchor its operations with the fiber and network assets of Indonet, Digital Edge’s wholly owned telecommunications subsidiary. To enhance network reliability, Indonet is deploying 100% underground fiber routes to the site, ensuring resilience and robust connectivity. Market analysts suggest that Indonesia’s digital economy, projected to reach over $146 billion by 2025 (according to Google, Temasek, and Bain & Company’s 2022 report), makes this investment both timely and strategically critical.
What’s Ahead: Market Implications and Competition
This investment underscores fierce competition in Southeast Asia’s hyperscale data center market, particularly as AI and cloud providers accelerate their influence in the region. Industry observers note that Digital Edge’s $4.5 billion commitment places it in direct competition with other major global players targeting Indonesia, such as Amazon Web Services, Google Cloud, and Microsoft Azure.
What sets Digital Edge apart, however, is its focus on sustainability, scalability, and carrier-neutral solutions—all key differentiators for hyperscale and enterprise customers demanding future-ready infrastructure. Additionally, the integration of advanced cooling and energy-efficiency techniques could signal a broader shift in how data centers in Indonesia are designed for environmental compliance.
This landmark initiative aligns with Indonesia’s National Digital Transformation Strategy, supporting several government objectives aimed at advancing infra-tech projects and improving the nation’s ICT infrastructure. With additional phases planned, the CGK Campus could become a linchpin for connectivity innovation across Southeast Asia.
For more details, access the full article at Developing Telecoms.
