GDS Formalizes Joint Venture with INA, Propelling Digital Infrastructure Development in Indonesia

BEIJING, Oct. 18, 2023 /PRNewswire/ -- GDS, a leading developer and operator of high-performance data centers in Asia, has officially formed a joint venture with Indonesia Investment Authority (INA), Indonesia's sovereign wealth fund, aiming to propel the growth and advancement of the data center landscape in Indonesia. The signing ceremony, witnessed by the President of Indonesia Mr. Joko Widodo, took place on 16 October 2023 at the China–Indonesia Business Forum in Beijing on the eve of the 3rd Belt and Road Forum for International Cooperation.

Following the initial partnership announcement on September 1 this year, GDS and INA signed the definitive agreements on Monday to formalize the partnership, demonstrating their unwavering commitment to pooling together resources, expertise, and visions to develop a nationwide data center platform in Indonesia. The first project focuses on the development of a hyperscale data center campus located in Nongsa Digital Park (NDP), Batam, an area officially designated as a Special Economic Zone (SEZ) by the Indonesian government. The upcoming Batam data center campus will utilize local and renewable energy sources while integrating GDS's advanced Smart DC (Data Center) solution, promising to establish an industry benchmark for the region.

William Huang, Chairman and CEO of GDS, said, "I am delighted with the substantial progress we have made in forming a joint venture with INA. Through the utilization of our advanced solution and expertise, together with INA's strategic investment, this partnership represents not only a collaboration but also a synergistic relationship. As we embark on this transformative journey, we reiterate our unwavering commitment to enhancing Indonesia's digital connectivity and data capabilities. At GDS, we are here to create a resilient and innovative digital ecosystem that propels Indonesia to the forefront of the regional digital economy."

Ridha Wirakusumah, CEO of INA, commented, "This partnership signifies a remarkable step forward in our mission to catalyze the digital transformation of Indonesia. With GDS's unparalleled expertise in high-performance data center development and operation, we are strategically positioned to augment Indonesia's digital infrastructure landscape. This is not just a milestone for INA and GDS but a leap towards realizing the vast potential and opportunities in Indonesia's digital future."

Amid growing demand for digitally empowered services, Indonesia has the distinction of achieving a second-place ranking in the APAC region in the data center opportunity index, with a 22 MW of take-up in 2022^[1]. The data center industry continues to witness unprecedented growth, primarily driven by the widespread adoption of cloud computing and the anticipated surge in AI applications. In this market environment, the joint venture between GDS and INA is strategically positioned to strengthen their commitment to scaling Indonesia's digital infrastructure. This partnership also contributes significantly to the nation's digital economic growth and data onshoring initiatives.

GDS and INA extend appreciation to all stakeholders and anticipate finalizing the transaction by the end of the year. Their vision is to accelerate the implementation of crucial digital infrastructure and guide businesses and organizations toward a prosperous digital future, aspiring for Indonesia's digital infrastructure to emerge as a regional symbol of innovation, sustainability, and excellence.

About GDS

GDS (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China and Southeast Asia. Its facilities are strategically located in primary economic hubs where demand for high-performance data center services is concentrated. With a track record spanning 22 years, GDS has successfully delivered services to some of the largest and most demanding customers in need of outsourced data center solutions. GDS serves over 840 customers as the largest carrier-neutral data center service provider in China. With over 100 data centers, GDS offers data center services to hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, as well as large private sector and multinational corporations. Recognizing the potential for growth in Asia, GDS established its international headquarters in Singapore in 2021. This move has allowed GDS to develop a strategic Southeast Asia strategy to better serve clients and contribute to the region's digital economy ecosystem. To learn more about GDS, please visit http://www.gds-services.com, or follow us on LinkedIn.

About Indonesia Investment Authority (INA)

Indonesia Investment Authority is Indonesia's sovereign wealth fund mandated to increase investment to support the country's sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia's advantages and provide risk-adjusted optimal returns. For more information, visit: www.ina.go.id.

SOURCE GDS