Equinix invests US$74 million to build data center in Indonesia
Indonesia is about to get more data centers as the fourth most populated country in the world continues to see increasing demand for such services. Already home to major cloud providers including Google Cloud, AWS, Microsoft Azure, and Alibaba Cloud, Indonesia is already headed to become the second-largest public cloud market in Southeast Asia.
Now, Equinix is looking to join the bandwagon in Indonesia. The tech company will be investing US$74 million to set up its International Business Exchange (IBX) data center in Jakarta. The expansion is expected to enable Indonesia and international businesses to leverage its trusted platform to bring together and interconnect the foundational infrastructure to power their businesses.
According to statistics, the revenue in the data center market in Indonesia is projected to reach US$2.84 billion in 2022. The market’s largest segment is Network Infrastructure with a projected market volume of US$1.99 billion in 2022. Telecom operators, followed by colocation operators dominate the data center market in Indonesia.
At the same time, the government provides tax incentives to the data industry, especially in investments. With more than US$2.1 billion in investment, the industry can get a tax reduction for around 20 years.
For Jeremy Deutsch, President, Asia-Pacific, Equinix, the IBX data center in Jakarta will add a strategically important, high-growth market to Equinix’s extensive network of interconnected data centers across the world. Having a presence in Indonesia allows Equinix to provide the digital infrastructure that enables local businesses to tap growth opportunities abroad and support global organizations looking to access the expanding Indonesian digital economy. We look forward to working closely with local authorities, network providers, and the broader industry ecosystem players to help unleash Indonesia’s digital potential.”
The eight-story facility is scheduled to open by the second half of 2024 and is expected to provide more than 1,600 cabinets and more than 5,300 square meters of colocation space when fully built. The facility will incorporate sustainability into its design, leveraging innovative technologies such as cool array to support economic and environmental goals for organizations in Indonesia. This is part of Equinix’s Future First strategy that underscores the company’s commitment to green the digital economy.
Equinix’s expansion to Jakarta is aligned with the Indonesian government’s digital transformation initiatives, boosting the country’s digital infrastructure objectives according to the goals set out in the Indonesia Digital Roadmap 2021–2024. Platform Equinix® currently spans 32 countries around the world, and this new data center in Jakarta will serve as a business conduit for local and global enterprises, cloud & IT service providers, and network service providers.
Currently, Equinix has 50 major projects that are underway across 35 metros in 22 countries, including new data center builds in Dublin, Montréal, New York, Paris, and Warsaw. Most recently, Equinix entered Chile and Peru with a total of five IBX data centers, with an enterprise value estimated at approximately US$735 million. The company has also completed its acquisition of West African data center and connectivity solutions provider MainOne for an enterprise value of US$320 million.
In Asia-Pacific, Equinix announced an initial investment of over US$86 million to build Equinix’s third IBX data center in Mumbai and an investment of over US$64 million for its first IBX data center in Chennai.
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