CoreWeave to Construct Three AI Data Centers in Indonesia by 2028, Expanding into APAC Market and Driving AI Storage Demand

August 9, 2026

Converge Digest USA

Overview

CoreWeave announced plans to build three AI data center facilities in Indonesia by 2028, marking its first expansion into the Asia-Pacific region. This initiative will add a total of 360MW of IT load capacity, addressing regional demand for AI cloud services and providing low-latency, data-local AI infrastructure. Concurrently, a $335 million contract with CoreWeave led to a surge in Backblaze’s stock, illustrating the widespread impact of the AI infrastructure cycle on data storage and optical networking sectors.

In Depth

Key Findings

CoreWeave, a prominent AI cloud service provider, has unveiled ambitious plans to construct three state-of-the-art AI data center facilities in Indonesia by 2028, signaling its strategic entry into the Asia-Pacific market. This substantial expansion will introduce an aggregate of 360 megawatts (MW) of IT load capacity, directly addressing the escalating demand for AI workloads across the APAC region. This move is poised to bolster regional economies by delivering low-latency, data-local AI infrastructure, while also demonstrating the profound impact of the AI infrastructure cycle on the broader data storage market. Indeed, a significant $335 million contract with CoreWeave propelled the stock value of data storage company Backblaze to new highs.

Technical & Business Details

Data Center Construction in Indonesia: CoreWeave is partnering with Singapore-based consultancy Yondr Group to develop data centers across three locations in Indonesia, including Jakarta and the Riau Islands. These facilities will be engineered with cutting-edge AI accelerators, high-speed interconnects, and efficient cooling systems to support massive AI training and inference workloads. This regional expansion strategically anticipates the accelerating adoption of AI and the growth of the digital economy, particularly in Southeast Asia.
Total Capacity of 360MW IT Load: The addition of 360MW capacity is exceptionally large for AI data centers, cementing CoreWeave’s position as one of the world’s leading AI infrastructure providers. This capacity is capable of hosting tens of thousands of high-performance GPUs, providing the computational resources necessary for complex AI model training and real-time AI application execution.
AI Infrastructure Cycle Impacts Storage Market: The volume of data generated and processed by AI models is growing exponentially, driving heightened demand for high-performance storage solutions. The substantial contract between a cloud storage provider like Backblaze and CoreWeave clearly illustrates that AI infrastructure demand extends beyond mere computational power, creating widespread economic effects across foundational sectors such as storage and networking, including optical interconnects. Optical networking stocks have also seen significant appreciation, further validating the sustained high demand for optical interconnects in AI data centers.

Background & Context

The rapid advancement of generative AI has created unprecedented demand for data center resources globally. Particularly in the Asia-Pacific region, accelerated digital transformation and increased investment in AI technologies have heightened the need for high-performance computing infrastructure. Specialized AI cloud providers like CoreWeave offer optimized access to GPU resources and services tailored specifically for AI workloads, establishing a competitive advantage over traditional general-purpose cloud providers. This expansion into Indonesia carries strategic implications for geographically distributing AI workloads and addressing data sovereignty requirements.

Strategic Significance & Outlook

CoreWeave’s deployment of AI data centers in Indonesia will further accelerate the growth of the AI ecosystem in the APAC region. The provision of low-latency AI infrastructure will create opportunities for local startups and enterprises to develop and deploy more advanced AI applications. Moreover, the economic ripple effects of AI infrastructure on related industries such as data storage and optical networking are expected to continue, stimulating further investment and technological innovation in these areas. CoreWeave’s success symbolizes the importance of specialized cloud services in the AI era and the dynamic changes occurring within the global data center market.

Source: https://convergedigest.com/coreweave-targets-apac-with-plans-for-three-ai-data-centres-in-indonesia/

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