Batam Island emerges as potential hub for Oracle’s cloud services

JAKARTA, INDONESIA: Oracle Corporation is currently in talks with the Indonesian government to establish a cloud services centre in the country, as the American tech company aims to expand its data centre presence in South Asia.

According to Bloomberg, Oracle is considering Batam Island, located off the southern coast of Singapore, for this initiative. The sources, who requested to remain anonymous, indicated that the Nongsa Digital Park in Batam is a preferred location due to its existing data centres and favourable conditions, including its status as a free trade zone and its proximity to the affluent cities of Singapore and Malaysia, where Oracle has similar cloud service plans.

Nongsa Digital Park promotes its plentiful electric power supply, strong security measures, and optimal seismic conditions on its website. The park is also linked to parts of Indonesia, Singapore, and the west coast of the United States via 13 international submarine fibre optic cables. Recently, real estate private equity firm Gaw Capital Partners launched a data centre at the park.

US technology giants, including Meta Platforms Inc. and Google, are quickly establishing data centres throughout Asia to support a predicted surge in artificial intelligence services globally.

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Much of this investment has been directed toward countries with more developed tech ecosystems and infrastructure, such as Malaysia and Singapore. Notably, Salesforce Inc. recently declared a $1 billion investment in Singapore.

Oracle already operates two cloud computing centers in Singapore and has previously announced a $6.5 billion plan to build a similar facility in Malaysia. Bain & Company projects that the global market for AI-related products could reach $990 billion by 2027, as the adoption of this technology transforms business and governmental operations.