Jakarta, August 6, 2025- In the heart of Jakarta’s business district, a Korean-Indonesian partnership is building something the city has never seen before, an AI-ready, liquid-cooled data center designed for the next generation of computing. Backed by a USD 300 million investment, LG CNS becomes the first Korean tech company to break ground in Indonesia’s hyperscale space, and it’s not doing it alone.
The facility is being developed through a 50:50 joint venture between LG CNS and PT SMPlus Digital Investment, a subsidiary of Indonesia’s Sinar Mas Group. Together, the companies formed LG Sinar Mas, a new entity created to design, build, and operate what will become Indonesia’s first AI-native hyperscale data center by a Korean firm.
Located in Jakarta’s Kuningan Central Business District, the project will be built on an 8,500 square meter site. It’s designed to support high-density AI workloads using advanced liquid cooling systems, and will feature power redundancy, seismic isolation, and smart battery storage tailored to the challenges of operating in Southeast Asia’s climate and geophysical zone. The facility will launch with an initial IT capacity of 18 megawatts.
The joint venture was finalized in Seoul on March 27, 2024, but construction is scheduled to begin in the first quarter of 2025. The first phase is expected to be operational by mid-2026, with full completion targeted by early 2027.
“The project is expected to be completed in 2027 ... The targets of this project are large companies, especially in the banking sector, and Sinar Mas companies and Korean companies,” said Han Donghyup, CEO, LG Sinar Mas
To support the project, LG is deploying its full engineering and infrastructure ecosystem under what it calls the One LG Solution. LG CNS is leading digital operations and cooling optimization. LG Electronics is supplying energy-efficient systems and security infrastructure. LG Energy Solution will provide the lithium-ion battery stacks and intelligent backup systems required for uninterrupted AI performance.
For Indonesia, the timing could not be more critical. The country’s IT services market is projected to cross USD 7 billion by 2027, driven by cloud adoption, banking, and a growing focus on AI.
The Jakarta data center is expected to serve both multinational and domestic enterprises that are rapidly scaling compute-heavy operations. Sinar Mas, one of Indonesia’s largest conglomerates, views the partnership as a core part of the country's digital transformation.
For LG CNS, the project is about more than infrastructure. It’s a strategic leap into Southeast Asia’s AI backbone. After years of investing in smart logistics, cloud systems, and digital twins across Korea, the company is now exporting that vision, with Jakarta as its launchpad.
Franky Oesman Widjaja, Chairman of Sinar Mas, added, “We believe this collaborative strength will take us further, connecting and creating a smarter, more prosperous future.”
The announcement signals a shift in how Korean technology companies are approaching global expansion, not just through consumer electronics or battery plants, but by wiring the next wave of AI data infrastructure in regions with rising demand.
This isn’t just a building full of servers. It’s a new foundation for how Southeast Asia will train its models, store its data, and run its AI-powered future. And for the first time, that foundation is being laid by a Korean firm.
