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LG CNS to build Korea’s 1st overseas AI data center in Indonesia

  • Kim Kyu-sik and Yoon Yeon-hae
  • 기사입력:2025.08.07 09:58:01
  • 최종수정:2025.08.07 09:58:01
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(LG CNS)
(LG CNS)

LG CNS Co., a digital transformation company under South Korea’s LG Group, has become the first Korean company to win an overseas artificial intelligence (AI) data center construction project.

LG CNS announced on Wednesday that it has signed a 100 billion won ($72 million) contract to build an AI data center in Menteng, central Jakarta, through its joint venture with Indonesia’s third-largest conglomerate Sinar Mas Group, LG Sinarmas Technology Solutions.

The project, which is for local data center developer Kuningan Mas Gemilang (KMG), involves constructing an 11-story hyperscale data center with a total floor area of 46,281 square meters by the end of 2026.

The center will be capable of accommodating over 100,000 servers, with an initial power capacity of 30 megawatts (MW), which will be gradually expanded to 220 MW moving forward.

“We have once again proven our technological capabilities with this full-scale project after successfully completing the consulting and design contract with KMG last year,” said a company official.

LG CNS will be responsible for the entire process – from design and construction to operation – covering all aspects of the data center infrastructure, including cooling systems, power equipment, and telecommunications networks.

AI data centers require significantly higher power density and cooling efficiency compared to traditional data centers due to the concentrated heat generated by high-performance graphics processing unit (GPU) servers.

LG CNS plans to apply hybrid cooling technology that combines air circulation and liquid cooling and will precisely design the layout of power supply lines and cooling equipment to match the heat structure of AI servers.

It will also equip the data center with a robust backup power system to ensure uninterrupted operation even during power outages or disruptions, maximizing operational continuity.

Tenant companies will also benefit from a network-neutral environment where they can freely select communication lines or configure multiple communication lines.

LG CNS plans to sequentially introduce high-value-added services such as dedicated GPU farms for AI and high-density server clusters.

The Menteng district, where the data center will be built, is considered a prime location for connecting Indonesia’s national network with subsea cable networks, making it a strong candidate to become a Southeast Asian network hub.

With this project as a starting point, LG CNS aims to expand its global AI infrastructure business into other regions, including the Middle East and North America.

According to global market research firm Fortune Business Insights, the AI data center market is projected to grow at an annual average of 26.8 percent from around $17.7 billion this year to $93.6 billion in 2032.

LG CNS’s export ratio is also growing steadily.

According to disclosures filed with the Financial Supervisory Service, the company’s exports accounted for 18.6 percent of total revenue in 2023, 21.9 percent in 2024, and 22.3 percent in the first quarter of 2025.

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