Introduction to Oracle’s Expansion
Oracle is set to expand into Indonesia by leasing data centre space from DayOne Data Centres. This move would mark Oracle’s first cloud services operation in the country and deepen its relationship with a regional player that counts ByteDance as its biggest client.
About DayOne Data Centres
DayOne, based in Singapore, is a spin-off from Chinese data centre company GDS Holdings. It serves international customers, with TikTok owner ByteDance as its top customer and Oracle close behind. DayOne’s connection to China-based GDS Holdings remains active, with GDS keeping a stake in the spinoff.
The Indonesia Deal
Oracle will take over data centre plots at Nongsa Digital Park, located on Indonesia’s Batam island. The park is already a tech hub, drawing operators due to its free-trade zone status and proximity to Singapore and Malaysia. The sites Oracle plans to lease could support at least 120 megawatts of capacity, according to sources close to the deal. That scale suggests a major investment – facilities of such a size typically require over US$1 billion to build, depending on location, equipment, and intended use.
Oracle’s Existing Operations
Oracle already runs two cloud data centres in Singapore and is building another in Malaysia. Earlier this year, it also set up an AI Centre of Excellence in Singapore and outlined a plan to train 10,000 people in digital skills by 2027. Oracle will be the only tenant at the DayOne sites, sources said.
The Big Picture
The Batam deal comes as US tech firms ramp up their presence in Asia to support growing AI infrastructure needs. Meta and Google have focused investments in countries with more developed networks like Singapore and Malaysia. Salesforce recently announced a US$1 billion commitment to Singapore, and Oracle pledged US$6.5 billion for cloud infrastructure in Malaysia last year.
The AI Connection
The move also ties into Oracle’s broader work with OpenAI. The AI firm is leasing large amounts of computing power from Oracle under the Stargate initiative – a US$500 billion project to build AI-focused data centres both in the US and abroad, backed by partners including Oracle and SoftBank. Consulting firm Bain expects the global market for AI products and services to approach US$1 trillion by 2027.
Conclusion
In conclusion, Oracle’s expansion into Indonesia marks a significant move for the company, deepening its relationship with DayOne Data Centres and supporting the growing demand for AI infrastructure in Asia. This investment is expected to have a major impact on the region’s tech industry, and it will be interesting to see how it unfolds.
FAQs
Q: What is Oracle’s plan in Indonesia?
A: Oracle is leasing data centre space from DayOne Data Centres in Indonesia to expand its cloud services operation in the country.
Q: Who is DayOne Data Centres’ biggest client?
A: ByteDance, the owner of TikTok, is DayOne Data Centres’ biggest client.
Q: How much capacity will the leased sites support?
A: The sites Oracle plans to lease could support at least 120 megawatts of capacity.
Q: What is the estimated cost of building facilities of this size?
A: Facilities of this size typically require over US$1 billion to build, depending on location, equipment, and intended use.
Q: What is the Stargate initiative?
A: The Stargate initiative is a US$500 billion project to build AI-focused data centres both in the US and abroad, backed by partners including Oracle and SoftBank.
