Indonesian conglomerate Sinar Mas is partnering with South Korean investment firm Korea Investment Holdings Co. for a data center project in Jakarta.

Citing people with knowledge of the matter, the Korea Economic Daily reports Korea Investment Real Asset Management Co. and Sinar Mas have set up a joint venture to build a hyperscale data center in the central business district of Jakarta.

The $300 million project will see each company contribute $53 million, with the rest raised through financing. The joint venture will be known as Kuningan Mas Gemilang (KMG).

The companies aim to develop a 44,195 sqm, 18MW data center on an 8,515 sqm plot of land located in Menteng Atas, Setiabudi in Jakarta. The facility will total 11 stories.

Land has been purchased and requests for project approval have been submitted. Construction is set to be completed in 2027.

Korea Investment is also holding discussions with Sinar Mas to build and operate additional data centers in Indonesia, the sources said.

Sinar Mas is an Indonesian conglomerate founded in 1938 and has holdings in real estate, financial services, and telecommunications. It owns local telco Smartfren, which is in talks to merge with rival operator XL Axiata.

Sinar Mas formed a joint venture with LG CNS, the IT services arm of South Korean conglomerate LG, earlier this year. The JV will focus primarily on data center and cloud services.

Sinar Mas has previously partnered with K2 Data Centres to develop facilities in Jakarta. Established in 2017, K2 is a wholly-owned subsidiary of Malaysian conglomerate the Kuok Group, owned by Malaysian billionaire Robert Kuok.