Singtel signs agreement to develop first data center in Indonesia

Singtel has unveiled plans for its first data center in Indonesia, which it hopes will tap into growing demand for digital and cloud services. It has signed up local partners Medco Power and Telkom, the latter of which will hold majority ownership of the new facility.

Both Singtel and Medco Power will be minority shareholders of the super-scale data center, to be located in the Kabil Industrial Park along Batam’s east coast.

To be developed in three phases on an 8-hectare site, the data center will have a total capacity of 51MW (megawatts) when fully completed, Singtel said in a statement Wednesday. The telecommunications company said that the first phase will see the campus operate at a capacity of 20MW.

It added that the facility will meet the latest industry standards for security and sustainability, with dual power sources including renewables from Medco Power.

Singtel’s commercial director of regional data center business, Andrew Lim, said: “This strategic partnership with Telkom and Medco Power in Batam marks our first foray into the market. data center market in Indonesia. As Southeast Asia’s largest digital economy, Indonesia is at the core of our expansion plans into high-growth markets.”

The digital economy of Asean market is estimated to be worth 130 billion USD by 2025, according to the latest report e-Conomy SEA . report from Google, Temasek and Bain & Company. This is expected to drive the Indonesian data center market to a growth rate exceeding 11% annually to $2 billion by 2025, says Singtel, citing research from Frost and Sullivan.

Elsewhere in Asean, Singtel is also adding capacity for Singapore Data Center as well as building a 20MW data center in Thailand with local partners Gulf Energy and Advanced Info Service (AIS). The facility in Thailand is expected to begin operations in 2025.



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