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LG CNS inks deal for $72M AI data center in Indonesia in Korean first

Published: 06 Aug. 2025, 17:18 Updated: 06 Aug. 2025, 19:33

A render of an AI data center in Jakarta, Indonesia contracted to LG CNS [LG CNS]

LG CNS has signed a 100 billion won ($72 million) contract to build an AI data center in Jakarta, Indonesia, marking the first time a Korean company has secured such a project overseas.

The IT firm announced Wednesday that it signed the deal through LG SinarMas Technology Solutions, a joint venture with Indonesia’s Sinar Mas Group, the country’s third-largest conglomerate. The contract was made with KMG, a local joint venture between Sinar Mas and Korea Investment Real Asset Management, which has been spearheading AI data center development.

The project calls for the construction of a hyperscale AI data center in the Indonesian capital by 2026. The 11-story facility will accommodate over 100,000 servers and operate with a power capacity of 30 megawatts.

LG CNS will oversee key infrastructure including cooling systems, electricity and telecommunications. KMG plans to expand the center’s capacity to 220 megawatts in later phases, aiming to build Indonesia’s largest data facility.

The company attributed its winning bid to the “One LG” strategy, which leverages core competencies across the LG Group. It combines LG CNS’s experience in data center design, construction and operation with LG Electronics’ cooling technologies and LG Energy Solution’s battery systems for backup power.

LG CNS’s seismic isolation systems, designed to absorb vibrations and protect servers and equipment during earthquakes, were also key to securing the deal. Located in the seismically active Pacific Ring of Fire, Southeast Asia places a premium on safety and operational resilience.

The company said it will install redundant infrastructure to ensure uninterrupted operations around the clock, even during power outages.

Southeast Asia is drawing growing interest from U.S. tech giants as a cost-effective hub for next-generation AI development thanks to its rapid growth and low operating costs.

The global AI data market, valued at $13.6 billion in 2024, is expected to grow 28.3 percent annually to reach $60.5 billion by 2030, according to market research firm Grand View Research.

“We will use this project as a springboard to expand our AI data center business further in Indonesia, Singapore, Malaysia and other global markets,” said LG CNS CEO Hyun Shin-gyoon.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
YI WOO-LIM [[email protected]]