LG CNS Fills Indonesia AI Data Center, Cautious on GPU Spending

What happened

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 and has already secured tenants for its entire capacity before completion, establishing a stable revenue base from the start of operations. 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, and in August 2025 it secured a 100 billion won infrastructure construction contract; KMG is a joint venture established by Indonesia's Sinar Mas Group and Korea Investment Real Asset Management, and 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 a power intake capacity of 30 megawatts (MW), accommodating more than 100,000 servers; project owner KMG plans to expand total power intake capacity to 220 MW. The company is pursuing additional data center construction projects in Indonesia and exploring expansion into North America and Europe, where it plans to focus on prefabricated modular data centers using modular technology designed to support Nvidia's next-generation AI platform, Vera Rubin, pursuing business cooperation through its U.S. subsidiary and local partners. On the GPU services business, CFO Song Kwang-ryun expressed a positive view of the medium- to long-term growth potential of GPU-as-a-Service (GPUaaS) and said the company is reviewing business opportunities involving LG Group affiliates and external enterprises, but must consider the substantial upfront investment costs and the rapid pace of technological change; it will proceed cautiously, focusing on projects with established commercial viability, and intends to determine the scale of future GPUaaS investments based on actual demand and profitability, separately from the GPU investment already approved. 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. 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.

Impact and signal

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Source and time

Source: The Elec · 11/1/2026 · View original source