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Global digital infrastructure provider, EDGNEX Data Centres by DAMAC, has announced that it plans to invest in its first data center in Indonesia.

The planned data center, with a capacity of 15 MW, will be constructed at MT Haryono in Jakarta. EDGNEX mentioned that the site is located 3 km away from one of the most interconnected data center clusters in Jakarta's central data hub.

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EDGNEX, a subsidiary of UAE-based luxury real estate developer, DAMAC Properties, has announced that the first phase of its state-of-the-art data center in Indonesia is set to be completed by the fourth quarter of 2025. While the company has not disclosed the financial specifics of the investment, this development marks a significant step in EDGNEX’s broader strategy to expand its data center footprint across Southeast Asia.

In 2024, the data center market revenue is projected to reach USD 2.99 billion, with network infrastructure leading the market at USD 2.01 billion. The market is expected to grow at an annual rate of 6.80% (CAGR 2024-2028), reaching USD 3.89 billion by 2028, according to Statista. This growth highlights the increasing demand for data center services, underscoring the strategic importance of EDGNEX's investment in Indonesia to meet these rising needs.

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Escalating Advanced Technological Deployment

Indonesia, with its rapidly growing digital economy and burgeoning tech sector, is a strategic location for EDGNEX’s latest venture. The new data center is poised to meet the escalating demands of cloud service providers and support the deployment of advanced technologies, including artificial intelligence (AI). By situating its data center in Indonesia, EDGNEX aims to leverage the country’s dynamic start-up ecosystem and robust economic growth.

Danish Nayar, the Senior Vice President of Investments and Acquisitions at DAMAC Capital, mentioned that Jakarta is working towards expanding its data center capacity to 1 GW. However, to support this growth, more Tier III-level colocation data centers will be needed. Nayar stated, "Our new facility in downtown Jakarta will cater to the rising demand for cloud service providers, edge nodes, and potential artificial intelligence deployments."

The demand for data centers is being driven by several factors, including the rise of cloud computing, the proliferation of digital services, and the need for secure, scalable data storage solutions. EDGNEX’s data center will provide critical infrastructure to support these needs, offering state-of-the-art facilities designed to accommodate the requirements of major cloud service providers.

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