Puradelta Lestari’s initiative may indicate the increasing profile of data centers as investment targets in Indonesia. By creating specialized data center locations, more of Indonesia’s growing digital load can be kept on-shore.
PT Puradelta Lestari Tbk, an Indonesia-based integrated property developer, is currently developing a specialized industrial zone targeting data centers and related industries located in Kota Deltamas, a 3,200 hectare integrated city located in Central Cikarang in Bekasi, West Java, as part of its Greenland International Industrial Center (GIIC) complex.
Recently, data centers have received a lot of attention, and for good reason. Data centers are an integral aspect of any society that is ready for the digital age since they are the hub for everything that happens online, from data storage to processing. As a result, just as the world is becoming more and more online, so too must the infrastructure that keeps us connected.
Indonesia is reliant on data centers due to its high internet penetration. In 2022, there are 210 million internet users in Indonesia, representing a penetration rate of 77.02 % as of the first quarter of 2022, according to the annual survey conducted by the Indonesian Internet Providers Association (APJII).
Many developers have moved quickly to meet the growing need for industrial spaces that can manage the demanding requirements of the IT industry in response to the predominance of data centers and their potential for the country’s digital economy.
A 300 hectare planned residential area in Kota Deltamas has been converted to industrial usage; this area was created with the automotive sector in mind. The developers, however, rapidly adjusted to the change while also taking into account other companies that might be interested in the site, realizing the potential for data centers.
According to Tondy Suwanto, Puradelta Lestari director and corporate secretary, as a result of the transition to a digital ecosystem in line with technological advancements, the opportunity started to manifest around 2019.
Since 2019, they have been ready because they were aware that Indonesia’s data center industry will grow rapidly. He further added that the industrial zone in Deltamas has already welcomed 12 data centers and that there would be more.
However, due to a nondisclosure agreement (NDA), Suwanto was unable to reveal the names of some of the tenants, but he could affirm that they included well-known national and international firms as well as Telkom, the state-owned telecommunications operator, and the National Data Center (PDN).
Moreover, he also highlighted more queries for 90 hectares of industrial sites, of which almost half were from potential data centers. The industrial area has a variety of auxiliary facilities, including high-speed internet and a steady supply of power.
The supporting infrastructure presents one of the main obstacles to developing an area that is data center-friendly. To that end, Deltamas demonstrated its readiness through a number of actions, including the signing of a memorandum of understanding (MoU) with the state-owned electricity company PLN in 2021 to provide the city with 993 megavolt amperes (MVA) of electricity, the construction of a specialized water treatment facility, and the installation of high-speed fiber optics that can support multiple internet service providers (ISPs) for a dependable internet connection.
“We try to understand our clients’ needs so that their businesses are able to grow alongside us. Once they join us, they will always be with us, and this is why we always keep an open communication with our clients.” said Tondy Suwanto.