LG CNS To Build AI-Ready Data Centre in Indonesia

LG CNS Co., the information technology (IT) services unit of South Korea’s LG Group, has bagged a deal to build an artificial intelligence-ready data center in Indonesia, becoming the first Korean company to do so overseas.

The project, valued at approximately $72 million, is scheduled for completion by 2026, a report from Korea Economic Daily said on Thursday.

The company announced that it has signed a contract with Kuningan Mas Gemilang (KMG) via its joint venture with Sinar Mas Group, the Southeast Asian country’s third-largest conglomerate, to build a hyperscale AI data centre in Jakarta.

KMG is also a JV formed by Sinar Mars, whose businesses span from pulp and paper to property and banking, with Korea Investment Real Asset Management to develop AI data centers, one of the Indonesian business group’s new growth drivers, alongside cloud computing.

The planned facility will be a hyperscale data centre capable of housing more than 100,000 servers, with a total floor area of 46,281 sq. m. and an initial capacity of 30 megawatts (MW).

KMG plans to ramp up the centre’s capacity to 220 MW, positioning it as the largest data center in Indonesia. LG CNS will lead the entire infrastructure buildout, encompassing cooling, power and communications systems, the report said.

Expansion Beyond Southeast Asia

“As the first Korean company to enter the overseas AI data centre market, LG CNS will accelerate its expansion into Singapore, Malaysia and markets beyond Southeast Asia,” LG CNS Chief Executive Hyun Shin-gyoon said.

The project will leverage technologies from across LG Group affiliates.

LG CNS will apply its in-house capabilities for data centre design, construction and operations, while also incorporating LG Electronics Inc.’s cooling systems and LG Energy Solution Ltd.’s battery technologies.

The data centre will feature a hybrid cooling system, combining air and liquid cooling, and infrastructure optimised for GPU farms – clusters of graphics processing units designed to handle intensive AI and data workloads.

It will also support high-density racks with capacities of up to 130 kilowatts (KW), nearly 24 times higher than those in conventional data centres.

LG CNS, which has over 30 years of experience building and operating data centres both in Korea and abroad, aims to use this project as a springboard for broader AI infrastructure deployment across the globe, the report added.