Wedoany.com Report-Aug. 7, LG CNS, a South Korean IT firm, has signed a 100 billion won ($72 million) contract to construct an AI data center in Jakarta, Indonesia, marking the first time a Korean company has secured such an overseas project. The agreement, announced on Wednesday, was made through LG SinarMas Technology Solutions, a joint venture with Indonesia’s Sinar Mas Group, a major conglomerate. The contract involves KMG, a local partnership between Sinar Mas and Korea Investment Real Asset Management, focused on advancing AI data center development.

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

The project involves building a hyperscale AI data center in Jakarta, set for completion by 2026. The 11-story facility will house over 100,000 servers and operate with a 30-megawatt power capacity. LG CNS will manage critical infrastructure, including cooling systems, electricity, and telecommunications. KMG plans to expand the center’s capacity to 220 megawatts in future phases, aiming to create Indonesia’s largest data facility.

The success of LG CNS’s bid stems from the “One LG” strategy, which integrates expertise across LG Group affiliates. This combines LG CNS’s proficiency in data center design, construction, and operation with LG Electronics’ advanced cooling technologies and LG Energy Solution’s battery systems for reliable backup power. Additionally, LG CNS’s seismic isolation systems, designed to protect servers during earthquakes, were crucial in securing the contract, given Jakarta’s location in the seismically active Pacific Ring of Fire.

LG CNS stated: “We will install redundant infrastructure to ensure uninterrupted operations around the clock, even during power outages.” This focus on resilience aligns with Southeast Asia’s growing appeal as a cost-effective hub for AI development, attracting interest from global tech companies due to its rapid growth and competitive operating costs.

The global AI data center market, valued at $13.6 billion in 2024, is projected to grow at 28.3% annually, reaching $60.5 billion by 2030, according to Grand View Research. LG CNS CEO Hyun Shin-gyoon remarked: “We will use this project as a springboard to expand our AI data center business further in Indonesia, Singapore, Malaysia and other global markets.”

This initiative highlights LG CNS’s role in advancing AI infrastructure, leveraging collaborative expertise to support Indonesia’s digital growth while meeting global demand for reliable and efficient data centers.