Batam datacentre to capture additional demand from Singapore


In order to address the domestic demands of Indonesian businesses as well as the spillover demand for datacenter services from neighbouring Singapore, NeutraDC, an Indonesian company, is constructing a new datacenter facility in Batam.

The project, which will cover three campuses across eight hectares, has a 51MW maximum capacity. Using renewable energy from Indonesian power company Medco Power and outfitted with a building management system, it will initially provide roughly 20MW of capacity.

The datacenter division of Indonesian telecom company Telekomunikasi Indonesia is called NeutraDC (Telkom). It was created by combining Telkom's datacenter and connectivity assets to increase operational effectiveness. Its goal is to dominate the regional and worldwide datacenter markets.

The new facility, according to Telkom CEO Ririek Adriansyah, will boost Telkom's position in the regional datacenter market and allow it to meet the demand for datacenter services from businesses, businesses that are digitally native, and cloud service providers.

Kartika Wirjoatmodjo, Indonesia’s second vice-minister of state-owned enterprises, said: “The construction of this hyperscale datacentre in Batam by Telkom is a strategic step which we believe can serve the domestic and regional markets, particularly the Singapore market.

Telkom will own the majority of the datacenter, with Singtel and Medco Power of Singapore holding minority stakes. The connection services for the new facility, including the Indonesia Global Gateway (IGG), the Batam Singapore Cable System (BSCS), and a potential submarine cable, will be provided by Singtel and Telkom jointly.

Singtel’s stake in the new facility marks its foray into Indonesia’s datacentre market. Andrew Lim, chief commercial officer of its regional datacentre business, said: “As Southeast Asia’s largest digital economy, Indonesia is core to our expansion plans into high-growth markets.

“Our track record in designing, building and operating datacentres, combined with Telkom and Medco Power’s deep expertise in their respective fields, will prove a powerful partnership.”

According to Lim, Batam is projected to experience investment spillovers as a result of land and power shortages in surrounding markets due to its position, plentiful land, and connectivity to Singapore, Indonesia, and other regions of the world.

“In fact, our hyperscale customers are looking to grow their cloud computing infrastructure to serve the Asia-Pacific region while being located near Singapore,” he said.

The demand for digital and cloud services in Indonesia is increasing rapidly, and by 2025, it is expected that the country's digital economy will be worth $130 billion. By 2025, the market for datacenters is anticipated to increase at a rate of over 11% annually, reaching $2 billion.

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