Singtel announced plans to construct the first data center in Indonesia in collaboration with Indonesian telco Telkom and energy company Medco Power. The data center will provide various services, such as cloud and data storage, and support for business continuity. The partnership aims to meet the growing demand for digital services in Indonesia.
Unlike other hyper-scale data center projects mostly built in Java Island, the upcoming hyper-scale data center will be situated in the Kabil Industrial Estate near the eastern coast of Batam. The facility will be constructed in three stages on an 8-hectare plot. It will have a total power capacity of 51 megawatts once completed, with an initial capacity of 20 megawatts. According to Telkom president director Ririek Adriansyah, the facilities are expected to be operational in the second quarter of 2024.
Telkom holds the largest share of 60%, followed by Singtel with 35%, and Medco Power with a 5% stake in the data center. The partnership aims to enhance Telkom’s data center portfolio while solidifying Singtel’s presence in the Indonesian market. Singtel has been reaping significant returns from its investment in Telkom’s subsidiary, Telkomsel, for over a decade. In addition, Singtel seeks to expand its data center business in Southeast Asia.
Indonesia is an emerging data center market in Southeast Asia that has just witnessed over a 45% increase in investment in the data center. The majority of revenue for the Indonesian data center services market, about 80%, comes from Java Island, primarily due to a significant number of enterprise customers in Jakarta. The construction of a data center in Batam will be a momentum for the expansion of data centers in other cities in Indonesia.
(Sources: Katadata Insight; The Business Time; Arizton; and Frost & Sullivan)