LOGOS and Pure Data Centers Immediately Enliven Data Center Business Competition in Indonesia

Business data center or data centers in Indonesia will be crowded with new players. Now it's the turn of LOGOS and Pure Data Centers who are starting the construction of a data center in Jakarta. The 20-megawatt building with an area of ​​20 square meters is targeted to be ready for operation in Q1 2022.

Both companies see an opportunity amidst the rapid growth of the digital economy in Indonesia. As is known, LEGOS is a developer (property) company that focuses on the logistics industry that has been operating in Asia Pacific, including Indonesia. Meanwhile, Pure Data Centers is a global company that focuses on designing, building and operating data centers.

"Significant growth data center in Indonesia growth driven online commerce, in addition to service infrastructure needs cloud to support their business expansion and client needs. The existing logistics properties are, in many cases, well-suited to accommodate the mix of power and fiber network connectivity that supports data center businesses," said LEGOS Managing Director Stephen Hawkins.

The data centers that will be presented are hyperscale, to allow users to easily scale up (subscribed infrastructure capacity). This is also to support the needs of cloud computing service providers and customers co-location (private server computer care services in a data center environment).

Data center business development in Indonesia

From data compiled by ReportLinker, the market value of data centers in Indonesia will reach $1,7 billion in 2020 and is projected to reach $3,3 billion in 2026. With the huge potential for market growth, local players do not want to be outdone and strive to provide global-standard services.

There are several players from the corporate sector who play in this field, including MidPlaza Holding with Biznet DataCenter which currently has three locations in Jakarta, West Java and Bali -- the plan is to present a new data center infrastructure in Yogyakarta by the end of 2021. Business they are also supported service Biznet Gio awan cloud computing targeting business people at various scales, including startups and SMEs.

The state-owned company Telkom is also playing there, even recently they boasted that they would soon complete the final stage of construction of a hyperscale data center unit (tier 3 and 4). As is known, the data center is divided into four levels, namely tier 1 to 4 based on the capabilities and capacities possessed, including infrastructure standardization.

Several other data center business development initiatives are also being discussed. Recently, Anthoni Salim has joined PT DCI Indonesia Tbk; other conglomerates from the Djarum group to Lippo are also planning to enter this vertical. There is also a player from Singapore "Digital Edge" who wants to enter Indonesia by acquiring Indonet shares.

On the other hand, other global players are also flocking here. Latest Tencent official data center in Jakarta CBD area last April 2021. Previously Alibaba, Amazon, Google, and Microsoft also carried out the same initiative -- allocating trillions of Rupiah for the development of data centers in Indonesia.

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