Oracle Corporation is proceeding with plans to expand its cloud infrastructure footprint in Southeast Asia through a strategic partnership with DayOne Data Centers Singapore Pte Ltd, according to individuals familiar with the matter. The initiative marks the establishment of Oracle’s first cloud services centre in Indonesia and strengthens its collaboration with a regional operator whose largest client is ByteDance Ltd, the parent company of TikTok.
The Texas-headquartered technology company is set to lease data centre facilities operated by DayOne at Nongsa Digital Park, located on the Indonesian island of Batam. Sources indicate Oracle will become the exclusive tenant of specific plots within the park, with the capacity to support infrastructure totalling at least 120 megawatts of power.
A data centre of this scale typically entails capital expenditure of no less than US$1.2 billion, depending on factors such as site location, build specifications and whether it is configured for hyperscale AI workloads. This development corroborates an earlier Bloomberg News report detailing Oracle’s interest in launching a cloud hub in Indonesia.
Oracle declined to comment on the matter when approached. DayOne, the international division of China-based GDS Holdings Ltd, also did not respond to enquiries.
Research by SemiAnalysis identifies ByteDance as DayOne’s largest customer by a significant margin, with Oracle ranking as its second most prominent client.
Located in a free-trade zone and positioned strategically close to both Malaysia and Singapore, Nongsa Digital Park has emerged as a growing data centre hub. Its appeal has been further amplified by regional demand for cloud and AI services.
Oracle already operates two cloud regions in Singapore and, in 2023, announced a US$6.5 billion investment to develop similar capabilities in Malaysia.
The move comes as major US technology companies, including Meta Platforms Inc and Google, increase their investment across Asia to support the anticipated surge in artificial intelligence-driven services. Much of this capital is being directed to markets such as Malaysia and Singapore, which benefit from mature digital infrastructure and favourable investment climates. Salesforce Inc, for instance, recently unveiled a US$1 billion investment in Singapore.
According to Bain & Company, the global market for AI-related technologies is projected to reach US$990 billion by 2027, underscoring the transformative potential of AI across industries and geographies.
Oracle is also a key infrastructure partner in OpenAI’s Stargate project, which aims to invest up to US$500 billion in AI-related data centre infrastructure both in the United States and internationally. This includes Oracle’s provision of significant compute capacity for OpenAI’s next-generation models.
-Bloomberg
