Oracle to launch cloud operations in Indonesia through DayOne deal

Oracle is set to expand into Indonesia by leasing data centre space from DayOne Data Centres, according to people with knowledge of the deal. The 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.

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.

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 will be the only tenant at the DayOne sites, sources said. Neither company responded to requests for comment.

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.

DayOne’s connection to China-based GDS Holdings remains active, with GDS keeping a stake in the spinoff. ByteDance continues to dominate as DayOne’s largest customer, according to research firm SemiAnalysis.

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 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. That outlook is pushing more tech companies to scale their infrastructure, especially in Asia, where cloud demand and AI adoption are rising fast.

(Photo by BoliviaInteligente)

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