LG CNS Fills Indonesia AI Data Center, Cautious on GPU Spending - THE ELEC, Korea Electronics Industry Media
LG CNS has secured lease agreements for 100% of its artificial intelligence data center capacity in Indonesia before completion, while planning cautious investment in GPU services.
During its third-quarter earnings conference call on Oct. 30, LG CNS announced that its AI data center in Jakarta, Indonesia, is scheduled for completion in early November. The facility has already secured tenants for its entire capacity, establishing a stable revenue base from the start of operations.
We secured customers to lease the entire facility before completion, establishing a stable revenue base from the start of operations
First overseas project
The Indonesian data center is LG CNS' first overseas AI data center construction project. In 2024, the company signed a data center consulting and design contract with local operator KMG, subsequently securing a 100 billion won infrastructure construction contract in August 2025.
KMG is a joint venture established by Indonesia's Sinar Mas Group and Korea Investment Real Asset Management. LG CNS participated through LG Sinar Mas Technology Solutions, its joint venture with Sinar Mas Group.
The first-phase data center has 11 above-ground floors, a total floor area of 46,281 square meters and power intake capacity of 30 megawatts, accommodating more than 100,000 servers. KMG plans to expand total power intake to 220 MW.
Global expansion strategy
In North America and Europe, LG CNS plans to focus on prefabricated modular data centers. The company is pursuing business cooperation through its U.S. subsidiary and local partners, using modular technology designed to support Nvidia's next-generation AI platform, Vera Rubin.
This approach reduces on-site construction work compared with conventional methods and allows facilities to be expanded in stages according to customer demand. However, LG CNS intends to manage investment risks in its GPU services business separately from its broader AI infrastructure expansion.
Cautious GPU investment
LG CNS chief financial officer Song Kwang-ryun expressed a positive view of the medium- to long-term growth potential of GPU-as-a-Service (GPUaaS) during the conference call. He noted the company is reviewing business opportunities involving LG Group affiliates and external enterprises but must consider substantial upfront investment costs and rapid technological change.
We will proceed cautiously, focusing on projects with established commercial viability
LG CNS previously decided at a Sept. 11 board meeting to invest 381.4 billion won in GPUs and infrastructure equipment, including Nvidia's Vera Rubin, with equipment acquisition scheduled for June 30, 2027. The company appears to intend to determine future GPUaaS investments based on actual demand and profitability.
Meanwhile, AI and cloud revenue reached 961.5 billion won in the third quarter, accounting for 57.8% of LG CNS' total revenue of 1.6643 trillion won.
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