•360MW Batam AI factory targets AI-native tenants under Nvidia partnership
•Project anchors US$25–30bn demand and up to 170,000 GPU deployment
The fact
Australia-based AI infrastructure startup Firmus Technologies and Singapore-based DayOne will build a 360-megawatt Nvidia DSX AI Factory campus in Batam, Indonesia, under an eight-year partnership with Nvidia. The facility is located near Singapore and is Firmus' first data centre project in Indonesia. It is being constructed by DayOne and is expected to go live in Q1 2027.
The Batam site is designed as a multi-tenant platform for AI-native customers, unlike Firmus' Australian projects, which focus on hyperscaler cloud clients. The partnership provides Firmus access to Nvidia infrastructure through a revenue-sharing and credit-support model covering up to 170,000 AI accelerator chips across 2027–2028. Firmus expects US$25–30 billion in committed offtake agreements over the first six years. The company was valued at around US$5.5 billion after an April funding round led by Coatue Management with Nvidia participation and is expected to pursue an IPO this year, though timing is unconfirmed.
The Assessment
The deal reflects a shift towards tightly integrated AI infrastructure models where chip supply, financing and data centre build-out are bundled under long-term partnerships. Nvidia's DSX architecture — its first end-to-end AI factory blueprint covering compute, networking, storage and facility-level integration — extends the company's role from silicon supplier to full-stack infrastructure platform operator.
Through the revenue-sharing and credit-support model, Nvidia is effectively building a vertically integrated channel from chip to cloud service, reducing hyperscaler monopoly on AI compute distribution. Batam's location leverages proximity to Singapore and Indonesia's land and power capacity, enabling scaled AI compute expansion.
From a BTW perspective, this signals a structural change in how AI infrastructure is provisioned: Nvidia-backed operators can now offer hyperscale-grade AI compute directly to AI-native tenants, bypassing traditional cloud intermediaries.
What to Watch
Whether the Batam campus meets Q1 2027 commissioning and Nvidia's 2027–2028 GPU delivery schedule; whether Firmus proceeds with its planned IPO and at what valuation; and whether other operators replicate the DSX revenue-sharing model for AI-native data centre builds.