Zankore Secures $3.1 Billion Funding Package to Bolster Southeast Asian AI Compute Power

A significant expansion of artificial intelligence capabilities is underway in Southeast Asia following a major financial agreement by Zankore. The company recently finalized a senior term loan facility valued at as much as $3.1 billion to fund the installation of high-performance computing hardware. This initiative centers on the deployment of Nvidia-based infrastructure, intended to support a specialized AI cloud platform serving the region. The project will debut in Indonesia before expanding to other neighboring markets to meet growing digital demands.

The massive debt financing package was orchestrated by a consortium of major international financial institutions, including UOB, Qatar National Bank, Citi, ING, and Natixis Corporate & Investment Banking. These entities functioned as underwriters, bookrunners, and mandated lead arrangers for the deal, with Citi further acting as the primary debt advisor for Zankore. This capital injection is earmarked specifically for the purchase and integration of Nvidia GPU systems, which are essential for the intensive processing required by modern machine learning applications.

Initially established in August through a partnership involving Indosat Ooredoo Hutchison, Ooredoo Group, Nokia, and Nvidia, Zankore benefits from both financial backing and technical expertise. Ooredoo Group serves as the lead investor with a 49% ownership stake, having already pledged roughly $800 million toward the venture's inception. While Nokia provides the necessary networking components and Nvidia supplies the accelerated computing architecture, these two firms are categorized as technology partners rather than equity holders. The platform is designed to offer sovereign AI capabilities to a wide range of users, including government bodies, established corporations, and emerging startups.

Zankore has set ambitious milestones for its infrastructure rollout. The company aims to establish 100 MW of capacity initially, with plans to double that figure to 200 MW by the first half of 2027. Looking further ahead, the organization is targeting a total regional capacity of 1 GW. To achieve these goals, Zankore intends to utilize advanced Nvidia GB300 NVL72 systems and the DSX architecture. This development reflects a broader trend in the Asia-Pacific region, where nations like Indonesia are seeking to increase domestic data center capacity to reduce dependence on external hubs and capture a larger share of the burgeoning AI economy.

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Read original at TechRepublic AI.