Target Information

SM+, supported by Sinar Mas, has officially commenced the construction of SMX01, a state-of-the-art data center poised to enhance connectivity in Jakarta's Central Business District. In partnership with Korea Investment Real Asset Management (KIRA) and LG Sinar Mas, this facility represents a significant investment exceeding $300 million. SMX01 is designed to be AI-ready, addressing the burgeoning demand for digital infrastructure in Southeast Asia, where the digital economy is anticipated to reach $1 trillion by 2030.

Set to begin operations in the second half of 2026, SMX01 encompasses nearly 15,500 square meters of data hall white space, engineered for a diverse range of client needs, from enterprise to global hyperscale companies. With reliable infrastructure supporting up to 2,400 racks across eight data halls, SMX01 offers high scalability and customization to accommodate various data center demands, including high-density power requirements for AI and machine learning applications.

Industry Overview in Indonesia

The digital landscape in Indonesia is rapidly evolving, driven by a surge in internet adoption and mobile connectivity. The realm of digital services is poised for expansive growth, with significant investments pouring into infrastructure development to support this transition. As one of the largest economies in Southeast Asia, Indonesia presents immense opportunities for data-driven technologies and cloud services, making it an attractive location for data center operations.

The Indonesian government has been proactive in fostering a conducive environment for digital and tech innovations, introducing policies that encourage investment and support startups. With a young and tech-savvy population, the demand for digital services, cloud computing, and data storage is continuously increasing, thereby propelling the need for advanced data centers.

Moreover, the rapid growth of e-commerce, fintech, and social media platforms in Indonesia necessitates robust and scalable data solutions. Various industries, including banking, retail, and healthcare, require effective data management and analysis to leverage insights and enhance operational efficiency.

As a result, the data center market is expected to experience substantial growth, driven by increasing demand for co-location services and high-capacity infrastructure solutions that support AI and machine learning workloads. Data centers in Indonesia must adhere to global standards while also addressing local sustainability goals and energy efficiency.

Rationale Behind the Deal

The investment in SMX01 aligns with SM+ and its partners’ strategic vision of establishing Indonesia as a key technology innovation hub in Southeast Asia. By setting up a cutting-edge facility, SM+ aims to provide scalable infrastructure that can support the expected growth in digital services and cloud applications.

This project seeks to bridge the growing gap in digital infrastructure in Indonesia, enhancing connectivity and reducing latency for end-users. The establishment of SMX01 is expected to attract global companies to expand their operations in the region while also supporting diverse applications, including distributed AI workloads.

Investor Information

Korea Investment Real Asset Management (KIRA) is recognized for its expertise in investing and managing alternative assets, including real estate and infrastructure. With assets under management exceeding $5 billion as of December 2024, KIRA is a subsidiary of Korea Investment Holdings, a prominent financial institution in Korea.

Meanwhile, LG Sinar Mas, founded in 2024, is a joint venture between SM+ and LG’s digital transformation unit. It focuses on delivering innovative IT solutions aimed at accelerating digital transformation in Indonesia. By leveraging local market knowledge and technological capabilities, LG Sinar Mas aims to become a trusted and reliable IT service provider.

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The establishment of SMX01 is a noteworthy investment, reflecting a strategic response to the rising demand for digital infrastructure in Indonesia. Given the robust growth of the digital economy in the region, this data center is well-positioned to capitalize on emerging trends in AI and cloud services. Investing in this state-of-the-art facility not only positions SM+ and its partners at the forefront of a burgeoning market but also fosters a sustainable and energy-efficient approach to data center operations.

Furthermore, the collaboration between local and international stakeholders enhances the project's potential for success, as it brings together diverse expertise and resources that can drive innovation and quality standards. The anticipated operational features of SMX01, such as high-density power support and advanced cooling technologies, will ensure that it meets the evolving demands of clients at various scales.

In conclusion, the SMX01 project holds significant promise for the future of Indonesia’s digital landscape. By investing in this advanced infrastructure, SM+ and its partners are not just addressing current market needs, but also laying down the foundation for continued growth and development within the regional tech ecosystem.

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