Indonesia’s Growing Digital Infrastructure: Opportunities in the Data Center Industry

Government Builds First National Data Center in Bekasi (Data Center Illustration)

The rapid growth of Indonesia’s physical and digital infrastructure has presented new opportunities for both local and global business ventures. One such opportunity lies in the emerging data center industry, which is expected to generate significant revenue in the coming years.

Sam Narby, Head of Singapore and Indonesia at W Media, projects that the local data center market will reach $3.1 billion by 2023.

According to Narby, Indonesia’s large population, abundant renewable energy resources, favorable regulatory environment, and strategic location all point to further growth and innovation in the industry.

To facilitate discussions on the future of the data center industry in Indonesia, W.Media has announced the International Cloud & Datacenter Convention 2023, a roadshow that will take place on May 11, 2023, in Jakarta.

The convention is expected to bring together over 1,300 IT professionals, IT leaders, innovators, and other individuals involved in the data center sector, from end-consumers to principal providers.

The event will provide a platform for participants to discuss the latest technologies, share best practices, and gain insights into the Indonesian data center landscape.

IndoKeppel, also known as Keppel Data Centres, has expressed its support for the convention, stating that it offers a valuable opportunity to explore and exchange views on the digital infrastructure landscape in Indonesia.

As the country continues to invest in physical and digital infrastructure, the data center industry is poised for significant growth and development, providing new opportunities for businesses and investors alike.

Meanwhile, as previously reported, Indonesia has its first national data center. The national data center construction located in the Deltamas industrial area, Cikarang, Bekasi, West Java, has finally begun and is in the groundbreaking stage.

Minister of Communication and Information (Menkominfo) Johnny G. Plate said the construction of this data center is a collaboration with the French government with a contract value of 164.6 million Euros or equivalent to Rp. 2.59 trillion.

“This first data center was built in Deltamas, Cikarang, Bekasi. It is financed through the French government 85 percent and the pure rupiah state budget 15 percent with a total contract value of 164.6 million Euros,” Johnny said after the groundbreaking process, Wednesday (11/9/2022). ).

He detailed, this national data center has a processor capacity of 25,000 cores, 40 petabytes of storage, and 200 TB of memory.