LG CNS Co., the information technology 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 100 billion won ($72 million), is scheduled for completion by 2026.
The company announced on Wednesday 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 center in Jakarta.
KMG is also a JV formed by Sinar Mars with Korea Investment Real Asset Management to develop AI data centers, one of the Indonesian business group’s new growth drivers, alongside cloud computing.
Sinar Mas businesses span from pulp and paper to property and banking.
The planned facility will be a hyperscale data center capable of housing more than 100,000 servers, with a total floor area of 46,281 square meters and an initial capacity of 30 megawatts (MW).
KMG plans to ramp up the center’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 company said.
As the first Korean company to enter the overseas AI data center market, LG CNS will accelerate its expansion into Singapore, Malaysia and markets beyond Southeast Asia, said LG CNS Chief Executive Hyun Shin-gyoon.
POWERED BY LG GROUP
The project will leverage technologies from across LG Group affiliates.
LG CNS will apply its in-house capabilities for data center design, construction and operations, while also incorporating LG Electronics Inc.’s cooling systems and LG Energy Solution Ltd.’s battery technologies.
The data center will feature a hybrid cooling system, combining air and liquid cooling, and infrastructure optimized 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, nearly 24 times higher than those in conventional data centers.
LG CNS, which has over 30 years of experience building and operating data centers both in Korea and abroad, aims to use this project as a springboard for broader AI infrastructure deployment across the globe.
By Sookyung Seo
skseo@hankyung.com
Jennifer Nicholson-Breen edited this article.
