TLDR: LG CNS, a leading Korean IT solutions provider, has significantly expanded its presence in Southeast Asia by securing deals to construct hyperscale AI data centers in Vietnam and Indonesia. These strategic moves are part of the company’s broader ambition to capture a larger share of the region’s burgeoning digital infrastructure market, with plans to further enter Singapore and Malaysia.
Seoul, South Korea – LG CNS, the IT services arm of South Korea’s LG Group, is making significant strides in the Southeast Asian digital infrastructure market, announcing major contracts to build hyperscale artificial intelligence (AI) data centers in Vietnam and Indonesia. These agreements underscore the company’s aggressive push to become a key player in the region’s rapidly expanding AI and cloud computing landscape.
In Vietnam, LG CNS recently signed a pivotal agreement with the state-run telecom giant Vietnam Posts and Telecommunications Group (VNPT) and Korea Investment Real Asset Management. The signing ceremony took place on August 12, 2025, during the Korea-Vietnam Business Forum in Seoul. Under this partnership, LG CNS will leverage its extensive expertise in AI and cloud technology, alongside its capabilities in data center design and operations, to develop an AI-ready facility. The collaboration is set to extend beyond construction, encompassing the provision of servers, storage hardware, and networking systems to ensure the center is fully equipped for high-performance AI workloads. Furthermore, LG CNS plans to broaden its cooperation with VNPT into smart engineering sectors, including smart factories and logistics.
This Vietnam deal follows closely on the heels of LG CNS’s groundbreaking contract in Indonesia, secured just last week. Valued at approximately 100 billion won (around $72 million), this project marks a significant milestone as it is the first overseas AI data center venture for a Korean company. For the Indonesian initiative, LG CNS is partnering with the Sinar Mas Group, Indonesia’s third-largest conglomerate, through their joint venture, LG Sinarmas Technology Solutions. The contract was awarded by Kuningan Mas Gemilang (KMG), a joint venture between Sinar Mas Group and Korea Investment Real Asset Management.
The Indonesian facility, located in Jakarta, is slated for completion by the end of 2026. It is designed to be an 11-story structure with a total floor area of 46,281 square meters, capable of accommodating over 100,000 servers. The data center will commence operations with an initial power capacity of 30 megawatts (MW), with ambitious plans to expand to 220 MW, positioning it as the largest AI data center in Indonesia. This state-of-the-art facility will incorporate advanced features such as a hybrid air-and-liquid cooling system, GPU-optimized infrastructure, and high-density racks capable of supporting up to 130 kilowatts, nearly 24 times the capacity of conventional data centers. The project will also benefit from a ‘One LG’ approach, integrating technologies from LG affiliates, including cooling systems from LG Electronics Inc. and battery solutions from LG Energy Solution Ltd.
LG CNS Chief Executive Hyun Shin-gyoon emphasized the company’s strategic vision, stating, “Through this project, LG CNS aims to grow our AI data center footprint across Southeast Asia, including Singapore and Malaysia.” This statement highlights the company’s broader ambitions to expand its AI infrastructure market presence throughout the region.
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The company’s expansion comes at a time of robust growth in Southeast Asia’s digital infrastructure market, which Arizton Advisory & Intelligence projects to grow from $13.7 billion in 2024 to $30.5 billion by 2030. Indonesia, in particular, is experiencing explosive growth in its AI-optimized data center market, projected to more than double from $0.66 billion in 2025 to $1.44 billion by 2030, representing a compound annual growth rate of 16.91%. This growth is fueled by a high workplace AI adoption rate in Indonesia, reported at 92%, significantly above global averages. The broader Indonesian AI market is valued at $2.4 billion and is expected to reach $10.88 billion by 2030 with an annual growth rate of 28.65%. These market dynamics, coupled with an anticipated $100 billion investment flow into emerging market data centers by 2030, underscore the strategic importance of LG CNS’s recent ventures in the region.
