Oracle explores establishment of data centre on Indonesia's Batam Island: reports

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Oracle Corporation is reportedly in discussions with the Indonesian government to establish a cloud services centre on Batam Island, as part of its ongoing expansion in Southeast Asia.

According to Bloomberg, quoting sources familiar with the matter, the American technology giant favours Nongsa Digital Park in Batam due to its free trade zone status and proximity to Singapore and Malaysia.

This potential investment aligns with Oracle's broader strategy to enhance its cloud infrastructure across Asia. In October 2024, the company announced plans to invest over US$6.5 billion to establish its first public cloud region in Malaysia.

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Garrett Ilg, Oracle's executive vice president for Japan and Asia Pacific, has indicated to Reuters that the company aims to continue its expansion across Asia, with more data centres and infrastructure projects planned "from Japan all the way down to New Zealand... all the way to India."

Currently, Oracle operates two cloud computing facilities in Singapore and has 50 public cloud regions across 25 countries, its website says.

Nongsa Digital Park is an integrated digital hub in Batam, designed for the growth of digital businesses and data centre development. It prides itself on its location on elevated terrain in Eastern Batam, away from seismic fault lines, offering a more stable and secure site for data centres.

The park spans 166 hectares and is part of a broader ecosystem that includes residential areas, resorts, and commercial infrastructure. Developed by the Citramas Group, Nongsa Digital Park is positioned as Indonesia's gateway to the digital economy while also serving as a premier destination for tourism in the Riau Islands.

With its "Work, Live, Play" philosophy, Nongsa Digital Park aims to create a balanced and innovative environment for businesses and individuals alike. Earlier this year, Sinar Primera, together with its partner Gaw Capital Partners, a private equity firm specialising in real estate, officially launched Golden Digital Gateway, a state-of-the-art, carrier-neutral colocation data centre at Nongsa Digital Park.

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