Indonesia’s communications minister says a planned. artificial intelligence factory will strengthen the. country’s position as a regional AI. hub and attract high-value investment. The project, launched under Zankore, is. a partnership between Indosat Ooredoo Hutchison. Ooredoo Group, Nokia and Nvidia. According to the ministry, the facility. is expected to reach one gigawatt. of computing capacity within three years. which would make it Southeast Asia’s. largest AI computing infrastructure project.

Construction is scheduled to begin in. the first half of 2027 in. Batang, Central Java. The project is expected to start. with about 200 megawatts of capacity. before expanding to one gigawatt, Communications. and Digital Affairs Minister Meutya Hafid. said. Industry estimates cited in the report. put the investment needed for a. full-scale AI Factory at about US$50. million for every one megawatt of. AI computing capacity. ANTARA News Agency

The planned facility is designed as. more than a conventional data center. An AI Factory combines AI-ready data. centers, graphics processing units, networking, data. storage, orchestration, workload management and AI. operations in one ecosystem. Its computing infrastructure is intended to. provide the processing power needed to. develop, train and operate artificial intelligence. applications and services.

Zankore will also develop Sahabat-AI, an. open-source large language model with 70. billion parameters. The model is planned to support. Bahasa Indonesia and regional languages including. Javanese, Sundanese, Balinese and Batak. The platform will provide Token-as-a-Service, giving. businesses, government agencies, developers and the. public access to AI computing services. at lower cost.

Hafid said AI infrastructure investment was. critical to Indonesia’s competitiveness and to. building a national ecosystem spanning computing. capacity, AI services and locally developed. language models. She also said the country’s first. graphics processing unit (graphics processing unit. (graphics processing unit (GPU))) manufacturing facility, under construction in. Cikarang, West Java, is scheduled to. open in December. 2026. The government has said Indonesia’s domestic. market, expanding energy capacity and supportive. policies provide a foundation for becoming. a regional AI development hub.

The one-gigawatt figure is a plan. not current capacity. The first phase is also planned. for 2027. Investors should track land, power, permits. funding, and build dates. Each item will shape when the. site can serve users.

Power supply will be a key. issue for a site this large. So will network links and cooling. Customers will also want clear prices. and firm service dates. The source does not yet show. that these parts are complete.

Local language tools could widen use. in Indonesia. Their value will depend on skill. data, safety, and real business demand. A large model does not by. itself prove that firms will adopt. it.

For regional buyers, the project may. add a new place to run. AI work. That could offer more choice in. Southeast Asia. The outcome still depends on delivery. The stated scale should be tested. against each phase as it opens.

Source note

Read the official announcement for the underlying details.