Korea’s LG CNS wins first overseas AI data centre deal in Indonesia

LG CNS has secured a 100 billion won ($72 million) contract to build an AI data centre in Jakarta, a first for a Korean firm in a project of this kind overseas. The centre is expected to be completed by 2026 and will house over 100,000 servers.

The deal was signed through LG Sinar Mas Technology Solutions, a joint venture between Sinar Mas Group of Indonesia and LG of South Korea. Local partner KMG, backed by Korea Investment Real Asset Management, is leading the project to create Indonesia’s largest hyperscale AI data centre.

The 11-storey facility will launch with a power capacity of 30 megawatts, with plans to expand to 220 megawatts in future phases. LG CNS will manage key infrastructure, including electricity, cooling, and telecoms systems, using technologies across the LG Group.

Safety has been a key selling point. The centre will utilise seismic isolation systems to safeguard equipment in earthquake-prone Southeast Asia. Redundant power systems will also ensure continuous operation even during outages.

Southeast Asia is emerging as a cost-effective hub for AI among global technology giants. LG CNS plans to leverage the Jakarta project as a launchpad for expanding into Singapore, Malaysia, and other international markets.

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