DXN (ASX:DXN), a specialist in prefabricated modular data centres, has signed a strategic non-binding memorandum of understanding with Indonesia's Super Sistem Indonesia to capture emerging opportunities in the country's rapidly expanding digital infrastructure sector.
Under the agreement, SSI will place future modular data centre orders through a joint venture holding company domiciled in Singapore, equally owned by DXN and SSI, with production planned at a factory in Jakarta.
The partnership positions DXN to navigate Indonesia’s regulatory environment—including import tariffs of 20–40% and data sovereignty requirements—while localising operations to deliver cost-effective, high-quality solutions tailored to the domestic market.
Indonesia, with a population of approximately 285 million and one of the world's largest internet user bases, has seen rapid growth in e-commerce, fintech, cloud computing, and AI adoption, driving strong demand for both hyperscale and edge data centres.
Market forecasts project national data centre capacity to nearly double from 970 MW today to 1,800 MW by 2028.
Shalini Lagrutta, DXN Managing Director, said the MOU and JV will allow the company to participate in Southeast Asia’s next wave of infrastructure development while mitigating high import costs, initially focusing on SSI orders from Jakarta with the potential to expand to other customers.
The collaboration highlights DXN's strategic intent to capitalise on Indonesia’s digital economy, projected to generate around US$7 million in revenue for the JV over the next three years.
At the time of reporting, DXN’s share price was $0.45.