Philbert Shih on Jakarta Data Centre Market and DCI Indonesia Expansion
Source: DCI Indonesia Press Release
JAKARTA, Indonesia, Dec. 15, 2020 /PRNewswire/ — Southeast Asia (SEA) has set the seal on the top spot globally as the mobile economy hotspot, overtaken China as a giant economy country. According to the study, there are more than 400 million internet users in the SEA region which accounts for around 10% of the world’s total internet users. Indonesia has reached 175,4 million, with penetration at 64% of the total Indonesian population of 272,1 million.
Most of the growth is set down to Indonesia which has the largest population in the SEA region wherein (Indonesia) the number of internet users has witnessed growth of 20% over the past two years, equating to an estimate of 29 million new users. It is expected that Indonesia will be one of the major three fastest-growing e-commerce countries globally which include India, and Malaysia.
This does not come as a surprise, and the archipelago’s digital economy is expected to be the largest in Southeast Asia. According to the annual e-Conomy Southeast Asia study by Google, Temasek and Bain & Company, its market value is expected to triple to US$309 billion by 2025, driven by the rise of e-commerce, ride-hailing and online gaming.
To realize this billion-dollar potential, Indonesia needs to overcome the lack of robust digital infrastructure that hurdle both the public and private sectors. In order to reap the full benefits of digital transformation, investing in ICT is key, especially data center and network capabilities as these are backbones to successful implementation of innovative technologies.
Ensuring Indonesia data center scalability for booming digital economy
The Indonesian data centre colocation market is concentrated in the Greater Jakarta region in West Java. The Jakarta data centre market is set to enter an accelerated growth phase. The market is expected to have 72.5MW of total inventory built out by the end of 2020 and this will grow at a five-year CAGR of 22.3% according to Structure Research projections.
Currently, Indonesia’s colocation data centre market is at a beginning stage. It is relatively challenging for overseas data centre colocation operators looking to enter or expand, due the lack of rich fibre infrastructure outside the Golden Triangle and vibrant domestic outsourcing market.
Now the question is, how optimized are data center operators in Indonesia alone to cater the booming digital economy?
In-house or multi-tenant data center operators need to brace themselves for the surging volume of data and the growing expectations of a seamless digital experience. DCI Indonesia, Telkomsigma, Biznet and others are prominent players in the Indonesian market.
“There are tremendous opportunities ahead, the cloud is growing exponentially along with the booming digital economy, and they need to provide [the] infrastructure to cater for the cloud. The advantages are undoubtedly driving demand and fueling recent growth of new hyperscale facilities in Indonesia. Currently, this market has DCI Indonesia to fulfill the demand for hyperscalers to enter the market,” said Philbert Shih, Managing Director of Structure Research.
DCI Indonesia, has built a 200MW facility at 85,000 sq m land in Cibitung at Greater Jakarta last year, the first largest hyperscale campus in Indonesia, to meet future capacity needs seamlessly.
“As an Indonesian company, DCI Indonesia is the pioneer of the largest single site hyperscale data center facility in Indonesia with current capacity 22 MW, total up to 200 MW growth. Our long-term vision is to provide the best in class data center, to reinforce our commitment and seriousness in supporting the development of Indonesia’s digital economy towards the coming of the Industrial Revolution 4.0,” DCI CEO Toto Sugiri said.
Hyperscale cloud is the primary driver of growth in this market, creating steady demand for wholesale data centre capacity.
The Jakarta data centre colocation market is set to take off as Internet adoption accelerates in the mass market and enterprises begin to use various infrastructure outsourcing models. Much of this activity is moving to hyperscale cloud platforms and the data centre market is positioned to take full advantage.
Hyperscale will create demand for wholesale colocation to house the supporting infrastructure and drive uptake of interconnection services to integrate and scale with cloud services. For the total Jakarta market, built out capacity in 2025 is projected to reach 198.5MW, with maximum build out capacity of 236.3MW.
It may take a while longer for the emerging SEA countries, like Indonesia, to mature. But, Indonesia is set to be the fastest growing market for data centres in SEA, with a growth rate of 22 per cent per annum over the next five years.
The wholesale data centre colocation portion of the market is expected to grow at a five-year CAGR of 43.5% between 2020-25. The wholesale data centre colocation market alone will reach approximately 131.2 MW of built out capacity in 2025.
This research and trends shows Indonesia as a “hotspot” for hyperscale data center investment within the next five years, driven by the rise in cloud adoption. Google’s, Alibaba, and AWS entry into Indonesia also demonstrates a developing interest in the country as a substitute to Singapore.
Toto Sugiri, CEO of DCI Indonesia, added, “As of today, we continue to witness strong market demand from our current customers as well as global business players looking to enter the market. To keep up with demand, DCI Indonesia has completed the final stages of construction for our newest data center building, JK5, with the capacity of 15 MW, an additional 20% (approximately) from current capacity built out in Indonesia. This gave us a strong foundation to grow our business in supporting the readiness of Indonesia data center for this SEA booming digital economy in the next future”.
SOURCE DCI IndonesiaBack to Results