Digital Edge Plans $4.5 Billion AI Data Center Campus in Indonesia, With First Opening Due in Late 2026

Bekasi Campus Targets 500 Megawatts of Computing Capacity

Digital Edge plans to invest US$4.5 billion, approximately SGD 5.68 billion, in a data center campus in Bekasi, Indonesia, with 500 megawatts of information technology capacity and room to expand to one gigawatt. The Singapore company says the CGK Campus will be its largest infrastructure investment, with the first building scheduled to enter service in the fourth quarter of 2026.

The campus will stand in the GIIC Industrial Estate on Jakarta's eastern outskirts. Designed for artificial intelligence, machine learning and enterprise cloud services, it would become one of Indonesia's largest campuses built for these computing demands and rank among the substantial hyperscale developments in the Asia Pacific region. Hyperscale facilities provide computing infrastructure on a scale suited to large cloud providers and other customers operating extensive networks of servers.

Digital Edge is a portfolio company of Stonepeak Partners, a New York alternative asset manager. Founded in August 2020, Digital Edge now operates across nine countries in the Asia Pacific region and has secured more than 1.4 gigawatts of IT power across facilities in service, under construction or in development.

John Freeman, chief executive officer of Digital Edge, described the Indonesian project as the company's largest infrastructure commitment and a major step in its regional strategy.

The CGK Campus is a pivotal milestone in our APAC strategy and our largest infrastructure investment to date. This landmark investment will enable us to drive the next decade of innovation, cloud adoption, and digital services across Indonesia and the broader region.

Indonesia's growing use of digital services is creating demand for local computing capacity faster than domestic infrastructure has been able to respond. The project combines a large investment commitment with a staged construction schedule, allowing capacity to become available before the entire campus is completed.

Why Indonesia Is Attracting This Investment

Indonesia has more than 270 million residents, rising internet penetration and the largest economy in Southeast Asia by gross domestic product. Its market size and geographic position give investors a substantial base of potential customers for digital infrastructure, despite challenges involving electricity grid stability and regulatory complexity.

E-commerce, financial technology, streaming media and enterprise software have expanded rapidly. Each depends on data centers to store information and run services. Businesses also need computing facilities close enough to their users to respond quickly, especially when an application requires an immediate exchange of information.

Indonesian infrastructure limitations have led many businesses to use data centers in Singapore or other regional hubs. That can increase latency, the delay between sending a request and receiving a response, and complicate decisions about where data is stored and which country's rules apply to it.

Stephanus Oscar, chief executive officer of Digital Edge Indonesia, said the campus would address the gap between digital growth and infrastructure supply.

Indonesia's digital economy is expanding faster than infrastructure can keep up. The CGK Campus bridges that gap with 500MW of sustainable, carrier-neutral capacity built for hyperscale and AI deployments. With AI shaping the future of enterprise and cloud services, Digital Edge is at the forefront of this transformation.

The investment also reflects competition among Southeast Asian countries to become major digital infrastructure hubs. Indonesia is using its large domestic market and strategic location to attract foreign investment in technology infrastructure. Globally, data center capital is increasingly directed toward places combining large populations, growing digital economies and useful connections to surrounding markets.

What Makes the Campus Suitable for AI?

The CGK Campus is being designed for generative artificial intelligence, machine learning and enterprise cloud workloads. Generative AI systems produce material such as text, while machine learning systems identify patterns in data. Training and running large models require substantial computing power and equipment that produces concentrated heat.

Specialized clusters of graphics processing units, or GPUs, generate much higher heat densities than servers built around traditional central processing units, or CPUs. Power density describes how much electricity equipment consumes within a given space. Higher density allows more computing in that space, while increasing the cooling required.

Digital Edge plans to use direct-to-chip liquid cooling, which circulates coolant directly to processors instead of relying solely on cooling entire server rooms. The approach reduces energy consumption compared with traditional air conditioning and supports the concentrated heat produced by AI hardware. Older data centers can struggle to accommodate these power and cooling requirements.

Indonesian enterprises and government agencies are exploring machine learning for agricultural optimization and urban traffic management. Other applications described as demand drivers include large language models trained on Indonesian linguistic datasets, computer vision for automated quality checks in manufacturing, and predictive analytics for the country's extensive agricultural sector.

The campus is intended to support these emerging requirements alongside conventional cloud and enterprise computing. Its combination of substantial power capacity and advanced cooling is central to Digital Edge's effort to attract customers whose equipment needs exceed what existing facilities can supply.

How the Energy and Water Design Would Work

Digital Edge is targeting a Power Usage Effectiveness ratio of 1.25 for the CGK Campus. PUE compares all electricity consumed by a data center with the electricity used specifically by its computing equipment. The remaining consumption covers supporting systems, including cooling.

A PUE of 1.0 represents theoretical perfect efficiency, with all facility electricity going to computing equipment. A target of 1.25 is ambitious for a development of this size in a tropical climate, where cooling is an important operational requirement.

The campus design combines direct-to-chip cooling with recycled water systems and renewable energy integration. These measures respond to sustainability concerns that increasingly influence where large cloud customers choose to place their servers.

The distinction between IT capacity and total facility consumption also helps explain the project's scale. The announced 500 megawatts refers to power for information technology equipment. Cooling and other supporting operations are accounted for separately through the efficiency measure.

Digital Edge's provision for expansion to one gigawatt gives the architecture room to accommodate twice the announced 500 megawatts. The initial development commitment and the possible expansion therefore describe different stages of the campus's potential growth.

Bekasi Connects the Campus to Jakarta's Existing Network

The GIIC Industrial Estate location is approximately 40 kilometers from Digital Edge's existing EDGE1 and EDGE2 facilities in central Jakarta and less than 15 kilometers from other major data center clusters. Those distances place the new development near established infrastructure while providing room for expansion.

Bekasi, in West Java province on the eastern border of the capital region, gives the project access to the Jakarta metropolitan economy without the same land constraints and property costs associated with downtown construction. The selection reflects geographic, geological and network layout considerations.

Proximity to existing facilities creates opportunities for connections with low latency to Jakarta's main business districts. It also allows the campus to anchor a wider national digital network rather than operate as an isolated computing site.

Indonet, Digital Edge's wholly owned Indonesian telecommunications subsidiary, will provide connectivity. Its dedicated fiber routes to GIIC are being built entirely underground, an approach intended to improve physical security and resilience against disruptions.

Underground fiber requires greater capital spending than conventional aerial installations. Aerial cables are exposed to weather events, vehicle accidents and intentional damage. Digital Edge's choice reflects its focus on keeping critical computing services operating continuously.

Andy Rigoli, chief executive officer of Indonet, described the routes and the equipment supporting them.

Our new routes to the GIIC campus are built 100% underground, a design that significantly enhances reliability and resilience compared to traditional deployments. Combined with industry-leading equipment and advanced monitoring, this integration enables Digital Edge to deliver carrier-neutral solutions that meet the highest standards for hyperscale and enterprise customers.

A carrier neutral facility allows multiple telecommunications providers and internet exchange operators to connect within it. Customers can choose among providers rather than depend on one, and can arrange alternative network paths. This is a standard approach for campuses serving global cloud companies and multinational enterprises.

The connectivity strategy aligns with international Tier III and Tier IV data center standards, which require redundant connections and physically diverse routes to reduce single points of failure. A single point of failure is a component or connection whose loss could interrupt the wider service.

Three Buildings Begin a Longer Construction Program

Digital Edge plans to develop the CGK Campus in phases, with three dedicated data center buildings in the initial stage. Their staggered openings are intended to match capacity with customer demand and avoid making too much supply available at once.

The announced milestones and the financing that preceded them form the following timeline:

• August 2020: Digital Edge was founded, with Stonepeak making its founding investment.
• September 2024: Construction began on a 100 megawatt campus in Chonburi, Thailand.
• October 2024: Digital Edge opened the 36 megawatt SEL2 facility in Incheon, South Korea.
• Late 2024: Digital Edge secured a corporate facility equivalent to US$325 million from PT Bank Central Asia.
• Early January 2025: The company announced completion of a capital raise described as US$1.6 billion.
• Fourth quarter of 2026: The first CGK building is scheduled to enter service.
• First quarter of 2027: The second CGK building is scheduled to follow.
• Second quarter of 2027: The third building is scheduled to complete the initial phase.

The first building would provide capacity for early anchor tenants. The second is targeted to follow approximately three months later, allowing Digital Edge to refine operating procedures and incorporate technological advances between construction stages. Revenue from initial deployments can support later development.

The broader construction strategy describes staging deliveries across eighteen months and adapting subsequent specifications to lessons from initial operations and changing customer requirements for power density and cooling. It also aligns spending with confirmed customer commitments and preleasing agreements, which typically precede hyperscale openings.

The schedule is intended to match projected demand from major cloud providers and enterprises evaluating entry into Indonesia. Adjusting construction to demand helps limit the financial risk of building ahead of customer needs while preserving capacity to pursue new business.

Digital Edge has not disclosed capacity allocations for each building or a completion date for the full 500 megawatts; the status of previously anticipated openings elsewhere is also unspecified. Industry sizing expectations cited for the project suggest individual buildings could range from 15 to 30 megawatts, depending on power density and cooling design. Reaching 500 megawatts would require further phases, potentially extending into the late 2020s or early 2030s, depending on customer commitments.

Capital Raising Supports the Expansion

The US$4.5 billion Indonesia commitment follows substantial financing activity. In early January 2025, Digital Edge announced a capital raise described as US$1.6 billion, comprising approximately US$640 million in equity and US$1 billion in debt facilities.

Equity represents investors providing capital in exchange for ownership, while debt facilities provide borrowing capacity. The equity portion attracted substantial oversubscription, meaning investor demand exceeded the amount being sought. Major institutional investors and sovereign wealth funds participated.

The response reflected institutional interest in digital infrastructure in emerging Asian markets, particularly facilities designed for AI workloads. Stonepeak's continuing support through board representation and strategic guidance gives Digital Edge access to capital markets experience and operational practices from the infrastructure firm's wider portfolio.

Andrew Thomas, chairman of Digital Edge and a senior managing director at Stonepeak, linked the investor response to the company's operating record. His statement referred to the six countries in its footprint during that earlier financing period, compared with the nine countries described in the current account of its operations.

The level of interest received from existing and new investors is testament to Digital Edge's proven track record, expansion capacity, and relentless focus on delivering for our customers across the Asia Pacific region. Since making the founding investment in Digital Edge in 2020, Stonepeak has been proud to support the platform's expansion into six countries and a truly pan-APAC footprint.

Samuel Lee, who served as chief executive officer during the initial capital raise period, described the financing as support for the next stage of development.

This is a major milestone for Digital Edge and an affirmation of the quality of this platform and our team. We are very proud of what we have achieved and are excited to deliver on the next phase of AI-ready data center developments.

Indonesian Bank Funding and Projects Across Asia

PT Bank Central Asia provided a corporate facility in late 2024 denominated in Indonesian rupiah and equivalent to US$325 million. The financing supports Indonesian expansion and the refinancing of existing obligations.

Borrowing in local currency reduces exposure to exchange rate movements when construction costs and operating expenses are paid domestically. The arrangement also illustrates the growing sophistication of Indonesian banks in assessing technology infrastructure collateral and the cash flows that can support repayment.

Digital Edge's other developments show how Indonesia fits into a wider regional expansion. In October 2024, the company opened SEL2 in Incheon, South Korea. Its 36 megawatts form the first building in a planned campus of 100 megawatts.

The company's earlier pipeline also anticipated opening its first facility at a campus of 300 megawatts in Navi Mumbai, India, during the second quarter of 2025. TY07, a hyperscale edge facility in downtown Tokyo, was also anticipated and was to become Digital Edge's ninth Japanese data center.

In Thailand, Digital Edge established a joint venture with energy company B Grimm Power to develop a US$1 billion portfolio of hyperscale campuses designed for AI. That portfolio includes the campus of 100 megawatts in Chonburi province, east of Bangkok, where construction began in September 2024.

The planned 500 megawatts in Bekasi is five times the capacity of the 100 megawatt campuses described in Incheon and Chonburi. The comparison illustrates the scale of the Indonesian commitment within Digital Edge's regional development program.

Who the Campus Is Expected to Serve

International cloud providers seeking a local presence, Indonesian financial institutions needing disaster recovery facilities, and multinational companies establishing regional headquarters in Jakarta are among the expected customer groups. Disaster recovery capacity allows organizations to restore or continue services when their main systems are disrupted.

Government initiatives supporting the digital economy add to demand, including regulations requiring local storage for certain categories of financial and personal information. Domestic capacity can help customers address these requirements while reducing delays associated with processing information abroad.

Digital Edge faces competition from Princeton Digital Group, AirTrunk and Indonesian conglomerates entering or expanding in data center development. The scale of CGK creates a substantial barrier for smaller competitors and positions the company to pursue hyperscale customers seeking contiguous power allocations exceeding 100 megawatts.

A large contiguous allocation allows a customer to secure substantial computing capacity within the same development. For customers operating extensive server clusters, that can be an important part of site selection alongside cooling, connectivity, reliability and sustainability.

The range of potential customers supports the phased strategy by reducing dependence on a single business or industry. Financial services, cloud platforms, multinational enterprises and emerging AI applications have different requirements, while all contribute to demand for reliable domestic computing infrastructure.

Digital Edge's investment brings those demands together in one large campus plan. Its near term delivery milestones are the three openings scheduled from late 2026 through the first half of 2027. The wider ambition depends on subsequent construction phases and the customer commitments needed to support them.

The Essentials

• Digital Edge plans to invest US$4.5 billion, approximately SGD 5.68 billion, in the CGK Campus at GIIC Industrial Estate in Bekasi.
• The campus is planned for 500 megawatts of IT capacity, with architectural provision to expand to one gigawatt.
• The first three buildings are scheduled to open in the fourth quarter of 2026, the first quarter of 2027 and the second quarter of 2027.
• The design targets PUE of 1.25 and includes direct-to-chip liquid cooling, recycled water systems and renewable energy integration.
• Indonet will provide connectivity through dedicated fiber routes built entirely underground.
• The investment follows a capital raise described as US$1.6 billion and an Indonesian bank facility equivalent to US$325 million.
• Further phases are needed to reach 500 megawatts, with timing dependent on customer commitments.