Gaw Capital and Sinar Primera partner for Indonesian data centre

Real estate private equity firm Gaw Capital Partners has entered into a strategic partnership with Sinar Primera, a leading Indonesian developer of new economy real estate, for developing a data centre in Batam, Indonesia.

The alliance between Gaw Capital and Sinar Primera underscores a shared vision for capitalising on emerging opportunities in the digital infrastructure sector. With Gaw Capital as the primary investor, Sinar Primera will acquire a minority shareholder stake in the property and take on the role of development manager for the project.

Phase 1 of the data centre campus located in Nongsa Digital Park is scheduled to be operational by the fourth quarter of 2024. This new facility will be a single-storey building offering up to 6MW of critical IT load. By combining Gaw Capital’s investment acumen with Sinar Primera’s expertise in property development, the project aims to deliver a cutting-edge data centre facility that meets the stringent requirements of businesses seeking reliable, scalable, and secure data storage and processing capabilities.

The data centre campus in Nongsa Digital Park will enable the near-shoring strategy for data centre operators based in Singapore and fortify the “digital bridge” that connects Singapore and Indonesia. In recent communications shared by Nongsa Digital Park, the Indonesian government’s National Council for Special Economic Zones Secretariat General re-affirmed data centers’ properties security status and complete data security, giving customers and data centre operators the reassurance they need for data protection.

Kok Chye Ong, Managing Director and Head of IDC Platform, Asia (Ex-China) of Gaw Capital said, “We are thrilled to partner with Sinar Primera for this significant IDC project in Batam. Sinar Primera’s commitment to driving the new economy real estate industry forward aligns perfectly with our vision, and their extensive experience and industry knowledge complement Gaw Capital’s investment capabilities perfectly. In recent years, the Asia region stands as a prominent frontier in the data centre industry, offering vast opportunities for growth and development. Gaw Capital’s data centre platform, in line with this trend, has encompassed a strategic network of data centres situated in key Asian markets including China, Indonesia, Japan, South Korea, Vietnam, and the recent addition of Malaysia.”

Hong Kah Jin, Head of Sinar Primera Group said, “We are excited to join forces with Gaw Capital Partners for this data centre project. The collaboration allows us to combine our development expertise and local proficiency in the Indonesian market with Gaw Capital’s global real estate experience, paving the way for a cutting-edge data centre facility that will meet the increasing demand for advanced digital infrastructure in Batam and surrounding region. Indonesia’s demand for digital and cloud services is growing exponentially and it is an exciting opportunity to invest in the data centre industry.”

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