APPD Market Report Article

Batam

August 21, 2025

Day One has made 5 MW capacity operational and expand further with increasing power facility

  • Batam is rising as a critical alternative to space-constrained Singapore for data centre development, attracting hyperscale operators seeking locations for cloud, e-commerce, and AI infrastructure.
  • Batam has 80 MW under various stages of development out of a planned 250 MW at Nongsa Digital Park, with only about 6 MW fully utilised.

One of the hyperscalers has made significant pre-commitment in the Nongsa digital park

  • As Indonesia’s second-largest data centre hub, key developments include DayOne’s investment and Gaw Capital/Sinar Primera’s phased project implementation.
  •  Demand is primarily driven by hyperscale deployments but are yet to get operational.

Gaw Capital and Sinar Primera launched a 5.2 MW data centre in Batam with plans for 20 MW more

  • Power constraints will limit growth until 2026-27, with land banking occurring as operators anticipate future availability. Service response times are managed through Singapore-based technical support.
  • Power constraints will limit growth until 2026-27, with land banking occurring as operators anticipate future availability. Service response times are managed through Singapore-based technical support.

Outlook

  • For Users
    • Hyperscale pre-commitments to dominate demand.
    • AI developments to influence enterprise decisions.
    • Lease rentals rates to remain stable.
  • For Providers
    • To emerge as preferred location for inference workloads.
    • Stable growth driven expected due to connectivity hub status.
    • Availability of power to become key parameter while planning expansion.

Note: Rentals rates does not include electricity charges.

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