Oracle Corporation will partner with Singapore-based DayOne Data Centers to establish its first cloud services center in Indonesia.

The facility will be located at Nongsa Digital Park on Batam Island.

Oracle will lease data centers from DayOne, which can support facilities with at least 120 megawatts of power.

Oracle is expected to be the sole tenant at the leased plots.

Nongsa Digital Park has become a hub for data centers due to its free-trade zone status and proximity to Malaysia and Singapore.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Oracle’s expansion follows systematic investment pattern across Southeast Asia

Oracle’s partnership with DayOne in Indonesia represents the latest move in a calculated regional expansion strategy that prioritizes strategic locations.

The company already operates two cloud computing centers in Singapore and recently committed $6.5 billion to build cloud infrastructure in Malaysia 1.

This systematic approach of establishing multiple regional data centers allows Oracle to create a network of interconnected facilities that can serve customers across Southeast Asia while managing data sovereignty requirements.

Indonesia joins Singapore and Malaysia in Oracle’s Southeast Asian footprint, reflecting a broader industry trend where tech giants establish complementary facilities across neighboring countries rather than concentrating in a single location.

The investment pattern demonstrates Oracle’s long-term commitment to the region, competing with other cloud providers like Google, which recently announced a $1 billion investment in data centers in Thailand 1.

2️⃣ Strategic border locations emerging as data center hubs

Batam’s selection for Oracle’s Indonesian cloud center highlights the growing importance of strategic border locations that offer economic advantages while maintaining proximity to major commercial centers.

The Indonesian island’s free-trade zone status and closeness to Singapore make it particularly attractive, similar to how Johor (Malaysia) has emerged as a data center hotspot near Singapore with around 30 projects 2.

DayOne has already secured $412 million specifically for developing data centers in Batam’s Nongsa Digital Park, with plans to deliver 72MW of IT capacity 3.

These border locations allow companies to benefit from lower costs and favorable regulatory environments while maintaining the low-latency connections necessary for cloud services to major business hubs.

The pattern reflects a regional development strategy where countries like Indonesia and Malaysia leverage their proximity to Singapore to attract technology infrastructure investments that might otherwise go to the city-state.

3️⃣ Data center partnerships transcend geopolitical boundaries

Oracle’s partnership with DayOne, the international arm of Chinese data center operator GDS Holdings, demonstrates how infrastructure partnerships often cross geopolitical lines.

The original article notes that ByteDance (TikTok’s owner) is DayOne’s largest customer, with Oracle being the second largest, creating an interesting business triangle connecting American, Chinese, and Southeast Asian interests.

This commercial cooperation occurs despite broader US-China tech tensions, highlighting how data infrastructure development often follows business logic rather than geopolitical narratives.

The leasing arrangement, where Oracle will be the sole tenant at DayOne facilities, represents a capital-efficient expansion model that allows Oracle to rapidly scale its cloud presence without the full burden of construction and operation.

These cross-border partnerships are increasingly common in the data center industry, where specialized operators like DayOne/GDS provide the physical infrastructure while cloud providers like Oracle deliver the services.

Recent Oracle developments

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