LG CNS has made history as the first South Korean company to secure an overseas contract for constructing an artificial intelligence (AI) data center. The tech giant aims to complete a state-of-the-art, hyper-scale AI data center in Jakarta, Indonesia, with an estimated value of 1 trillion KRW (about 720 million USD), by the close of 2026.
On Wednesday, LG CNS revealed that it had inked a deal for the AI data center project with KMG, a local Indonesian firm. This agreement was facilitated through LG Sinarmas Technology Solutions, a joint venture between LG CNS and Sinar Mas Group, Indonesia’s third-largest conglomerate.
The ambitious project involves erecting a cutting-edge, hyper-scale AI data center in Jakarta. This facility will house over 100,000 servers within an 11-story structure, boasting a total floor area of 46,281 square meters (about 498,165 square foot) and an initial power capacity of 30 megawatts (MW). KMG’s vision extends beyond this first phase, with plans to expand the center’s total power capacity to a whopping 220 MW, positioning it as Indonesia’s largest data center.
KMG, a collaborative effort between Sinar Mas Group and Korea Investment Real Asset Management, has been spearheading the AI data center development. Sinar Mas, recognizing the potential in data centers and cloud services as key growth drivers, strategically chose LG CNS as its technology partner.
LG CNS’s involvement in this groundbreaking project stems from its successful completion of a consulting and design contract for the AI data center with KMG last year. This initial success paved the way for securing the main construction project.
In this venture, LG CNS will take charge of the 1 trillion KRW (about 720 million USD) infrastructure business, overseeing critical components such as cooling systems, power distribution, and communications networks.
A standout feature of LG CNS’s approach is the implementation of its One LG integrated solution. This comprehensive strategy leverages the LG Group’s core competencies, including LG CNS’s expertise in data center design, build, and operate (DBO), LG Electronics’ advanced cooling technologies, and LG Energy Solution’s cutting-edge battery solutions.
To address the surging demand for AI computing power in Indonesia and across Asia, the company plans to incorporate specialized designs and construction methods optimized for graphic processing unit (GPU) farms.
Specifically, LG CNS will implement a hybrid cooling system that combines air and liquid cooling technologies, redundant infrastructure to ensure uninterrupted power supply to high-density racks, and an eco-friendly climate control system that automatically regulates the data center’s temperature and humidity.
Furthermore, the data center will feature a network-neutral environment, allowing tenants the flexibility to choose their preferred communication lines. This setup enables businesses to select optimized network connections or implement multiple lines to enhance service reliability.
The chosen location for the AI data center in Jakarta’s central Menteng district offers strategic advantages. Its proximity to existing network infrastructure and submarine cable networks positions the facility as a potential future network hub for the region.
Hyun Shin-Gyoon, Chief Executive Officer (CEO) of LG CNS, expressed his vision for the project, stating that this landmark development will serve as a springboard for expanding its AI data center business globally, with a particular focus on Southeast Asian markets including Indonesia, Singapore, and Malaysia.