- Indosat’s neocloud revenue is poised to grow exponentially in the coming years, as its contracted pipeline balloons
- Revenue from 1H 2026 has already surpassed revenue for all of 2025
- IOH is planning to sell more than just raw GPU compute power, eyeing token plans and other full stack opportunities
Indosat Ooredoo Hutchison’s hard work laying the foundation for its neocloud business in 2025 is paying off big – to the tune of more than $1 billion in contracted revenue for the coming years.
“Demand is insane,” IOH CEO Vikram Sinha said on the Indonesian operator’s Q2 2026 earnings call. “The demand is not slowing down. It is in fact going up every week and every month.” He added it initially started with hyperscalers, but the operator has seen increasing interest from B2B enterprises and even B2C players.
IOH’s neocloud business raked in $33 million in revenue in the first half of the year. That total is well over the $28 million the same division had in sales for all of 2025.
Sinha noted the business has secured an annual recurring revenue pipeline of more than $300 million, which will kick in at the start of 2027. All told, Sinha said its neocloud unit has between $1.2 and $1.5 billion in contracted revenue.
Analysts on the call noted that such a large pipeline will demand a large amount of compute power. But Sinha said IOH has been able to lock in all the GPU, storage and networking components it needs. He added all the clusters it needs to serve its contracted demand should be live by October.
Executives on the call didn’t specify how much capacity IOH is building out. But previous reports indicate it is targeting 100 megawatts by the end of this year, expanding to as much as 1 gigawatt by 2030.
In 1H 2026, IOH spent $182 million acquiring GPUs, and it expects to shell out another $446 million in data center capex before the end of the year. All told, its 2026 neocloud capex will come in around $628 million.
Asked about the expected useful life of the GPUs it is acquiring, Sinha said its business models use a 5-year lifespan.
Strategic choices
In May, Chinese operators made waves when they began selling AI token plans directly to their mobile customers. Asked on the call if IOH was considering a similar move, Sinha indicated it is. He noted the app revolution that shaped the data era in telecoms was a huge missed opportunity for operators and said IOH doesn’t want to be cut out of the value chain again.
“We are setting up our own token factory where we want to train models and sell tokens to our 100 million customers, and also to others,” he said. But he added the operator isn’t interested in becoming a low-margin token reseller.
The CEO said IOH is focused on building full stack capabilities, supplementing its GPU compute power with a token factory, applications and its own LLM. Open weight models have made some of these moves possible and are also helping drive customer demand, he added.
“We are seeing that these open weight models are creating a lot more demand. As I said, we are at the very early stage on enterprise demand and also on B2C demand. The open weight model, open source is really helping us unlock more demand. And we see a lot more requests and demand coming,” Sinha said. “We also want to stay away from proprietary models and proprietary software.”
Read more about neoclouds here:
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