Oracle is set to establish its first cloud services centre in Indonesia through a partnership with DayOne Data Centers Singapore, Bloomberg reported citing people familiar with the matter.

The American database company intends to lease data centres located at Nongsa Digital Park on Batam Island. According to the report, Oracle will occupy entire DayOne’s plots, which are capable of supporting facilities with a power capacity of at least 120MW.

Establishing a data centre of this scale typically necessitates a capital investment of approximately $1.2bn. This investment can fluctuate based on various factors, including the site’s location, land costs, design specifications and whether the facility is tailored for hyperscale AI workloads.

Oracle has been in talks to set up a cloud services centre in Indonesia. However, representatives from Oracle did not confirm the initiative.

DayOne, headquartered in Singapore, serves as the international division of Chinese data centre operator GDS Holdings. It counts ByteDance, the owner of TikTok, as its largest client, followed by Oracle.

Nongsa Digital Park is already home to various data centres, due to the island’s free-trade zone status and its proximity to Malaysia and Singapore.

Oracle currently operates two cloud computing centres in Singapore, and it is constructing a similar facility in Malaysia. It established an AI Centre of Excellence in Singapore earlier this year.

Major US technology companies, including Meta Platforms and Google, are investing in data centres across Asia to support anticipated growth in AI services. Much of this investment has been directed towards countries with more developed tech ecosystems, such as Malaysia and Singapore.

Earlier in July 2025, OpenAI entered into a new agreement with Oracle to secure 4.5GW of computing power. The deal is valued at approximately $30bn annually.