Data Centre Opportunities In Indonesia


Indonesian data centre company PT Data Center Infrastructure (DCI) has opened a new facility in Cibitung, West Java. The location is an industrial complex, giving DCI and its partner Equinix a number of potential clients and is located close to the capital, Jakarta. The partnership was announced in October 2012, bringing data centre infrastructure and co - location services to the market . BMI believes data centres have considerable potential for consumers in emerging markets, with Indonesia's growing economy providing plenty of new opportunities.

Indonesia remains one of Asia's largest economies, with strong growth continuing in Q113 as GDP grew 6.0%. The country's strong growth and healthy outlook continue to attract international investment. DCI's new data centre, therefore, should find plenty of local and international customers. The data centre offers capacity of approximately 65,000 square feet with 1,250 cabinets available in the first phase of deployment. The data centre will also connect to a number of telecoms operators and carriers, allowing its users to create their own packages for their data centre needs.

New Services To Drive Market
Indonesia IT Market Growth By Segment (%)

While hardware remains the key component of Indonesia's IT market, it is the software and services segments that will see greatest growth over our five-year forecast period. The strong growth in hardware in previous years will underpin the demand for IT services. This will be further supported by increasing demand for internet services on both mobile and fixed networks.

DCI's president director highlighted the strong growth in internet users and smart mobile devices as key drivers behind the demand for more data centre services in Indonesia. BMI forecasts strong growth in internet access in Indonesia and expects customers to increase their use of data. While there are notable disparities in infrastructure availability between main cities and more rural areas, this should not affect DCI's data centre given its location near to the infrastructure needed.

Equinix has 95 data centres in 31 markets across 15 countries, offering DCI's customers access to a global footprint. By expanding its footprint the company gains access to a new, fast growing market and also extends its service offering to existing clients. For DCI, the link with Equinix will add confidence for a new player in the market and help it attract major clients in the Indonesian market.

The companies' new data centre will join 22 existing data centres in Indonesia, competing with the 13 located in and around Jakarta. With strong prospects for economic growth, BMI expects further interest in the Indonesian data centre market.

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Geography: Indonesia