K-Construction wins $107 million in contracts for AI data center in Indonesia

[Financial News] Korean companies have secured overseas projects worth about $107 million by building an AI-Ready data center in Jakarta, Indonesia, and taking on its operations. This marks the first time Korean companies have entered the overseas commercial data center market, and the first time they have built and operated an AI-Ready data center overseas. The project is seen as an example of the “Team Korea” model—where Korean companies share responsibility for construction, equipment and operations—being put into practice.
According to the Korea Overseas Infrastructure & Urban Development Corporation (KIND) on the 23rd, the contracts stem from the Jakarta AI-Ready data center development project, which KIND pursued in partnership with Korean companies. The project involves building and operating a structure in Jakarta with one basement level and 11 floors above ground, and a gross floor area of about 49,000 square meters. Its total cost is around $320 million. The project is seen as having created a foothold for entering global markets in emerging industries such as AI and big data.
LG CNS accounts for most of the contract value. Having operated data centers for several years, LG CNS is responsible for building the mechanical, electrical and plumbing (MEP) systems, as well as operating the facility after its completion. It secured $64 million for engineering, procurement and construction (EPC) and $6 million for operations and maintenance (O&M), bringing the value of its secured work to more than $70 million. Equipment at the heart of the data center will also be Korean-made. LG Electronics will supply the cooling systems, while LG Energy Solution will provide the batteries for the uninterruptible power supply (UPS).
The project’s co-sponsors include partners from both Korea and Indonesia. On the Korean side, Plus Inni IDC Fund, S Fund and KIND are listed as investors; locally, SM+, an affiliate of Sinar Mas, has joined the project. KIND invested $14 million in equity, serving as an initial source of funding for the project.
KIND plans to use this project as an opportunity to expand its investments into high-value-added digital infrastructure. It intends to continue seeking overseas investment opportunities linked to emerging industries of the future, such as AI and big data, and to bring together Korean companies’ technology and business capabilities through public-private cooperation to support digital infrastructure exports aligned with the national AI strategy. The Ministry of Land, Infrastructure and Transport also plans to continue providing comprehensive support, including improving policies and expanding financial assistance, to encourage more cases in which the government, public institutions and companies work as one team to break into overseas AI data center markets.

[email protected] Jung Kyung-soo Reporter