LG CNS captured a 100 billion won ($72 million) contract to construct an artificial intelligence data center in Jakarta, marking the South Korean company’s first AI infrastructure project overseas. The deal positions LG Group’s IT services unit to compete in Indonesia’s rapidly expanding data center market, valued at $2.39 billion in 2024.
The 11-story facility will house more than 100,000 servers across 46,281 square meters, with initial power capacity of 30 megawatts scaling to 220 megawatts. LG CNS plans completion by 2026 through its joint venture with Indonesia’s Sinar Mas Group, the country’s third-largest conglomerate.
The project client, Kuningan Mas Gemilang, is itself a joint venture between Sinar Mas and Korea Investment Real Asset Management, highlighting the complex partnerships required to navigate Indonesia’s business environment.
LG CNS faces significant operational challenges in a market dominated by global cloud giants including Amazon Web Services, Microsoft and Google. Indonesia’s data center sector, while growing at 7.99% annually, suffers from bureaucratic inefficiencies and skilled labor shortages that have historically complicated foreign investments.
The company will integrate cooling systems from LG Electronics and battery technology from LG Energy Solution, banking on cross-subsidiary synergies to differentiate its offering. LG CNS aims to use the Jakarta project as a springboard for expansion into Singapore and Malaysia, according to CEO Hyun Shin-kyun.
The facility’s location in central Jakarta provides access to national backbone networks, though Indonesia’s infrastructure reliability remains a persistent concern for data center operators in the region.
