The data center landscape in Indonesia is growing exponentially, as industry players like Princeton Digital Group look to tap into a market full of large domestic enterprise customers, SMEs and a broad swath of global multinational corporations.
To keep up with demand, Princeton Digital Group, a leading investor, developer and operator of Internet infrastructure, is developing two new hyperscale greenfield builds that are slated to be ready by 2022. One will be adjacent to their Cibitung facility in Jakarta and the other new build will be interconnected to their existing site in Surabaya.
Stephanus Tumbelaka, Princeton Digital Group’s Managing Director of Indonesia, said: “This market is quite dynamic and it has a significant amount of upside growth potential.”
Due to rising digitisation and Internet traffic, Indonesia’s data center market is expected to grow at an annual rate of 11%, with more than US$1 billion in investments.
Mr Tumbelaka said: “As you look across the entire country, Indonesia has many metro markets outside of Jakarta that have limited data center facilities and overall capacity.”
Along with the new facilities, Princeton Digital Group plans to upgrade their five existing facilities.
PDG has the most carrier neutral facilities in Indonesia, covering both Java and Sumatra islands and servicing customers across four different markets: Jakarta, Surabaya, Bandung and Pekenbaru.
Mr Tumbelaka added: “Indonesia is the world’s 14th largest country by land mass, therefore operators who only operate in a single metro or perhaps a single facility have a limited view of customers throughout Indonesia.”
Cloud computing boom creates untapped potential for hybrid solutions
Indonesia is projected to witness the fastest growth for cloud computing among the ASEAN countries, with tech giants like Alibaba Cloud, AWS, Google Cloud and Microsoft Azure entering the scene.
Mr Tumbelaka said: “The growth of the cloud computing market should help facilitate the growth of the data center infrastructure sector. This has been seen in other markets throughout Asia Pacific that PDG operates in.”
The Government’s proposed data protection law and recent data localization regulations may also positively impact both the local data center and cloud services market, as companies will be required to store their data locally in Indonesia.
This uptake in cloud computing reveals untapped potential for hybrid cloud solutions that require third party data center facilities like Princeton Digital Group’s to provide enterprise customers with global leading operational support and flexible commercial structures.
“We don’t feel that PDG competes with cloud service providers, rather they are our customers,” said Mr Tumbelaka.
Princeton Digital Group noticed more enterprise and public sector customers are active in all metros they operate in, indicating that customers are considering migrating infrastructure into third party colocation facilities.
Princeton Digital Group takes a proactive stance to overcome the challenges of rapid growth
A rapidly developing market like Indonesia’s requires Government support to help investment climates.
Data center operators should deploy to multiple metro markets to capture a significant amount of the domestic business.
Mr Tumbelaka said: “As the largest carrier neutral data center operator in Indonesia with facilities across four different metro markets, we have a unique perspective.”
PDG takes a proactive stance in the industry by reaching out across many different government agencies and industry groups to ensure their perspective is heard and that they are engaged in various discussions.
He added: “In addition to the hyperscaler cloud providers, we feel that we are well positioned to also be able to assist local enterprise customers and MNCs with their data center infrastructure requirements.”
Operators should look to enable the entire ecosystem of the data center community to achieve long term success since Indonesia’s market is less established compared to other countries.
PDG removed a lot of uncertainty away from entering new markets by having a strong local partner, XL Axiata, which gave them a strong foundation to grow their business.
The challenge of having sustainable sources of electricity to cope with the scale of the market may also impact Indonesia’s market
To overcome this, Princeton Digital Group focuses on building data centers towards global standards of energy efficient building codes such as BREEAM and LEED.
“Princeton Digital Group operates data centers across Asia Pacific and we align our operations and construction processes to meet or exceed local regulations and building codes,” said Mr Tumbelaka.
PDG has conducted operations optimisation programs focusing on energy efficiency within the core mechanical and electrical systems in their five existing facilities since taking over operations in December.
Their new developments in Jakarta and Surabaya will look to meet or exceed local regulations and building codes by working with technology and construction partners to ensure compliance with PDG’s practices during the entire life cycle of the project.
Princeton Digital Group aims to continue their strategy to deliver high-quality data centers to both the Indonesian enterprise market and the global hyperscale community with their new and existing facilities.
By Stuart Crowley, Editor, W.Media