Ooredoo Group is making significant strides in the realm of artificial intelligence (AI) by establishing Indonesia’s inaugural dedicated AI computing and neocloud platform. Known as Zankore, this platform will empower businesses to efficiently develop, train, deploy, and manage AI models at scale, tapping into a lucrative multi-billion-dollar AI infrastructure opportunity.
Strategic Collaborations and Initial Capacity
Through a strategic partnership with industry giants such as Nvidia and Nokia, along with Indosat Ooredoo Hutchison (IOH), Zankore is set to contract an impressive 1 gigawatt (GW) of AI capacity within the next three years. Notably, this capacity will be supported by Nvidia’s cutting-edge supercomputing technology. Zankore has already secured pre-orders for approximately 200 megawatts (MW) of AI capacity, with projections indicating that this initial capacity could generate around $13 billion in revenue over six years. For Ooredoo Group’s share, the expected contribution to EBITDA could reach about $600 million.
As a primary investor with a 49% stake in Zankore, Ooredoo is committing an initial investment of $800 million over the next five years to facilitate the development of this advanced platform. Despite being majority-owned by the Qatari government, Ooredoo operates independently and is listed publicly. Funding for the initial 200 MW of capacity will come through a combination of equity and debt, leveraging data centers across Indonesia to support this ambitious project.
Transitioning to Digital Infrastructure
Ooredoo’s Group CEO, Aziz Aluthman Fakhroo, emphasized that the company has been transitioning from a traditional telecommunications model to a comprehensive digital infrastructure provider for over three years. The launch of Zankore marks a pivotal moment in this evolution, with its origins traced back to an agreement made two years ago with Nvidia, making Ooredoo its first cloud partner in Indonesia. This collaboration enabled Ooredoo to test their AI offerings at a smaller scale, paving the way for the larger ambitions they are unveiling today.
The Zankore neocloud platform will incorporate GPU-as-a-Service, which permits end users to rent high-performance GPUs via the internet. This model is particularly beneficial for training AI models as it allows users to pay only for the resources they utilize, avoiding the hefty costs associated with physical hardware. An orchestration layer will further enhance efficiency by optimizing GPU capacity allocation across users, utilizing Nvidia technology to enhance overall compute power by up to 40%.
Market Opportunities and Future Projections
The growth potential for Zankore is substantial, particularly as Indonesia’s digital economy is projected to exceed $130 billion by 2030. KPMG predicts a surge in demand for AI-ready data centers, emphasizing the strategic importance of Zankore in the region’s burgeoning AI market. Fakhroo highlighted Indonesia’s unique advantages, such as a young, digitally savvy population, resource-rich landscapes, and favorable regulations, all contributing to an ideal environment for AI and digital infrastructure development.
Moreover, Southeast Asia’s increasing demand for data center capabilities is expected to drive rapid growth in AI workloads. According to Wood Mackenzie, regional power demand is projected to quadruple from 2.6 GW in 2025 to 10.7 GW by 2035. As demand surges, Fakhroo noted that current interest in Zankore’s capacity already exceeds 200 MW, allowing the company to selectively choose tenants based on their compliance and financial capabilities.
The ongoing developments reflect a trend across telecom companies globally as they seek to reposition themselves as digital infrastructure leaders. Ooredoo’s strategy demonstrates a proactive approach to capitalizing on the growing AI sector, adjusting to the market dynamics while maintaining a conservative debt profile, thus opening the door for substantial future investments and partnerships.