Key Points:
- The $16.8 billion Indonesia Investment Authority (INA) joined DayOne Data Centers’ massive $2 billion Series C funding round.
- INA formed a joint venture with DayOne to build a 72MW hyperscale data center campus in Batam’s Nongsa Digital Park.
- The joint project secured an IDR 6.7 trillion ($411 million) syndicated loan, the largest rupiah-denominated data center deal to date.
- To lead this digital infrastructure transition, INA appointed veteran investment banker Oki Ramadhana as its new CEO.
Indonesia’s state-backed sovereign wealth fund, the Indonesia Investment Authority (INA), has officially joined the global artificial intelligence and data center boom. On Tuesday, May 26, 2026, reports highlighted INA’s aggressive entry into digital infrastructure, marked by its participation in a massive $2 billion Series C funding round for Singapore-based hyperscale operator DayOne Data Centers. This strategic move aligns with a broader national effort to establish Southeast Asia as a primary hub for AI computing.
The record-breaking $2 billion equity round, led by U.S. investment giant Coatue Management, has pushed DayOne’s private market valuation to $10 billion. Originally founded as GDS International before spinning off from Chinese data center giant GDS Holdings, DayOne is preparing for a potential dual listing on Nasdaq and the Singapore Exchange to raise to $5 billion at an ambitious $20 billion valuation. INA’s capital injection strengthens DayOne’s liquidity reserves as it expands its high-density, AI-ready campuses across Asia-Pacific and Europe.
Beyond the global equity investment, INA has formed a direct, localized joint venture with DayOne to build a state-of-the-art data center campus inside the Nongsa Digital Park (NDP) in Batam. Designated as a Special Economic Zone by the Indonesian government, Batam’s proximity to Singapore offers low-latency fiber connectivity and shared regional resources. The joint project will develop three separate data centers with a combined power capacity of 72 megawatts (MW), marking INA’s first direct investment in the digital infrastructure asset class.
To fund the construction of the Batam campus, the joint venture secured a syndicated loan of IDR 6.7 trillion (approximately $411 million) from regional banking giants DBS and UOB. This transaction represents the largest rupiah-denominated data center financing agreement in Indonesia’s history, demonstrating how state-backed investment can successfully mobilize private commercial banking capital. The project’s first phase remains on track to become operational by December 2026.
This aggressive push into digital technology coincides with a major leadership reset at the $16.8 billion Indonesian sovereign wealth fund. Earlier this month, INA announced its new senior executive team for a five-year term, appointing veteran investment banker Oki Ramadhana as its new chief executive officer. Ramadhana, who brings over 27 years of investment banking experience at Goldman Sachs, Morgan Stanley, and HSBC, will oversee INA’s transition toward high-growth sectors, including AI, digital infrastructure, renewable energy, and modern healthcare.
Ramadhana succeeds former CEO Ridha Wirakusumah, who completed his term in February after successfully guiding INA’s initial growth since its launch in 2021. During Wirakusumah’s tenure, INA reported cumulative investments of 65.4 trillion rupiah (about $4 billion), backed by foreign direct investment inflows that ran 2.5 times higher than previous historical averages. The newly appointed executive team, which includes Chief Investment Officer Laksono Widodo and Chief Risk Officer Adhiputra Tanoyo, plans to build upon this solid foundation by aggressively expanding into high-tech, digital-first assets.
The government is actively supporting this digital infrastructure push through its national “Making Indonesia 4.0” strategy. Trade officials want to shift the domestic economy toward advanced digital technologies, offering a range of tax breaks and streamlined utility approvals to attract global tech giants. Amazon Web Services (AWS) and other hyperscalers have already committed billions of dollars to scale local cloud capacities. Driven by this digital transformation and the widespread adoption of AI, market research projects that Indonesia’s total data center capacity will surge from 514MW in 2023 to 1.41 gigawatts (GW) by 2029.
As the global artificial intelligence boom continues to accelerate, sovereign wealth funds are increasingly treating digital infrastructure as a vital, national strategic asset. By combining forces with DayOne Data Centers and securing record-breaking local financing, the Indonesia Investment Authority is positioning the country as an indispensable regional hub for next-generation computing. This active-state conviction not only drives near-term construction and engineering revenues but also ensures that Indonesia will successfully capture its share of the multi-billion-dollar global AI spending expansion.
