Digital Realty, a leading data center provider, has made its entry into the Indonesian market through a strategic joint venture with Bersama Digital Infrastructure Asia (BDIA), a prominent digital infrastructure platform in Southeast Asia. This collaboration has led to the formation of a new entity, Digital Realty Bersama, which will focus on developing and operating data centers across Indonesia.
The newly established Digital Realty Bersama company is set to revolutionize the Indonesian data center landscape. With a 50% stake in BDIA’s data centers and adjacent land, Digital Realty has injected approximately $100 million into the partnership to support future expansion initiatives. The joint venture now owns and manages a connected campus comprising the CGK11 data center in central Jakarta and the CGK10 data center in west Jakarta.
Initially launched with a 5 MW IT load capacity, the CGK11 data center is poised to scale up to 32 MW in its upcoming expansion phase. Angelo Syailendra, CEO of Digital Realty Bersama, emphasized the company’s commitment to providing cutting-edge and well-connected data center solutions to facilitate Jakarta’s burgeoning digital economy.
This strategic move marks Digital Realty’s foray into the Indonesian market, adding to its extensive global portfolio of over 300 data centers across 25 countries. The joint venture with BDIA underscores Digital Realty’s dedication to supporting the growth and acceleration of Indonesia’s digital economy.
The Indonesian data center sector has witnessed a surge in high-profile investments, with industry giants like Equinix and Microsoft making significant financial commitments to bolster the nation’s digital infrastructure. The market’s growth potential is further underscored by projections indicating that the Jakarta colocation market alone is expected to generate $499 million by 2025, with a five-year compound annual growth rate (CAGR) of 11%.
Verena Lim, CEO of Macquarie Group’s Asia operations, highlighted the attractiveness of the Southeast Asia digital infrastructure sector, citing the exponential rise in data consumption and the substantial capital investments required to meet the escalating demand. As Indonesia continues to attract major players in the tech industry, the country is poised to emerge as a key hub for cloud computing and data center services in the region.
In conclusion, Digital Realty’s entry into the Indonesian market through the formation of Digital Realty Bersama signifies a significant milestone in the country’s digital infrastructure development. With a focus on delivering cutting-edge data center solutions and supporting the nation’s digital economy growth, the joint venture is set to play a pivotal role in shaping Indonesia’s digital landscape for years to come.
