A new era for data storage and digital growth dawned in Batam City on Thursday, June 13,2024. NeutraDC Nxera Batam, a joint venture between Singtel, Telkom Indonesia, and Medco Power, held a piling ceremony marking the official start of construction for a cutting-edge data center.
This data center facility, with a total investment of IDR 1.4 trillion, is targeted to be ready to operate in the third quarter of 2025. It has a capacity of 51 megawatts of IT load and is specially prepared to serve data center requests for companies that are developing and utilizing artificial intelligence.
However, this project is more than just bricks and mortar. NeutraDC Nxera Batam is committed to building a sustainable facility.They’ll integrate artificial intelligence (AI) for efficient operations and leverage renewable energy sources.
But their vision goes even further. They aim to cultivate a thriving digital ecosystem in Batam. This includes developing local talent for the data center industry and forming strategic partnerships that promote environmental sustainability, as outlined in Memorandums of Understanding (MoUs).
The development of NeutraDC Nxera Batam expands NeutraDC’s network of hyperscale data centers, joining their existing facilities in Cikarang and neighboring Singapore. These facilities boast Tier III and Tier IV classifications,ensuring the highest level of reliability.
“We are proud to see this advancement,” said Honesti Basyir, Group Business Development Director at Telkom Group. “NeutraDC Nxera Batam will be a prime mover in accelerating innovative technology in Indonesia, particularly in AI.”
This AI-powered approach is expected to create new opportunities for businesses across the country. “The development of this data center will open doors for Indonesian industries to leverage advanced technology,” explained Bogi Witjaksono, Wholesale & International Service Director at Telkom Group. “We are confident that NeutraDC Nxera Batam will be a pillar for data, providing high-quality services for local and international companies alike.”
The project reflects Telkom Group’s dedication to building a future-proof infrastructure. “NeutraDC Nxera Batam is not just about fulfilling current needs, but also about being prepared for future challenges,” said Budi Setyawan Wijaya, Strategic Portfolio Director at Telkom Group. “This investment signifies our commitment to pushing for innovative digital transformation.”
Nxera, a joint venture partner, is excited to be part of this groundbreaking project. “We want to be a driving force in digital transformation and contribute to the ever-evolving and innovative data center ecosystem,” stated Bill Chang, Chief Executive Officer, Nxera and Singtel Digital Infraco.
Medco Power Indonesia, another key partner, is committed to providing sustainable energy solutions for the data center. “We are proud to participate in supporting the need for electric supply from renewable energy,” said Imron Gazali, Director and Chief Operating Officer of PT Medco Power Indonesia. “This aligns perfectly with the energy transition program planned by MedcoEnergi Group and the Indonesian Government to achieve Net Zero Emission by 2060.”
Indrama YM Purba, CEO of NeutraDC Nxera Batam, emphasized the significance of this collaboration for the regional economy. “This MoU is a strategic step to ensure the development and operations of our data center are not only efficient but also modern, sustainable, eco-friendly, and capable of creating a thriving digital ecosystem,” he concluded.
In an interview with W.Media, NeutraDC CEO Andreuw Th.A.F. highlighted Batam’s potential for cloud service providers (CSPs) and over-the-top (OTT) companies looking to enter the Indonesian market. This Special Economic Zone, located near Singapore, offers tax incentives and data residency compliance, making it a financially and legally attractive location.
Furthermore, Batam boasts a strong domestic market and the infrastructure required for AI players. With its strategic location and tech-friendly environment, Batam is poised to become a major player in Indonesia’s digital future.
The groundbreaking of NeutraDC Nxera Batam marks a new chapter for the city. This project signifies not just an economic boost through job creation and attracting businesses, but also a commitment to building a sustainable and technologically advanced future for Batam.
By focusing on AI and nurturing local talent, NeutraDC Nxera Batam is well-positioned to make Batam a key player in Indonesia’s digital roadmap and a prime location for international companies seeking a foothold in the Southeast Asian market.