Princeton Digital Group Prepares 2,1 Trillion Rupiah Data Center Expansion to Indonesia

Technology company Princeton Digital Group (PDG) is preparing an investment of $150 million or IDR 2,1 trillion to strengthen bisnis data center in Indonesia. The plan is that PDG will build data center new (greenfield) named Jakarta Cibitung 2 (JC2) with a capacity of 22 megawatts (MW) on an area of ​​19.550 m² at the same location.

PDG is a provider company data center in Asia based in Singapore. Currently, PDG has 19 data center spread over five countries, namely China, Japan, Singapore, India, and Indonesia within four years since it was first established. PDG is also building a flagship data center campus with a capacity of 100MW in Japan.

PDG Chairman and CEO Rangu Salgame said the company wants to strengthen its position as a data center leader in Asia Pacific. This is because Asia Pacific is currently the region with the largest data center in the world. To achieve this target, the company has relied on three strategies over the past four years, namely acquisitions, takeovers and upgrades, and the construction of new data centers.

"We continue to build our portfolio data center massive and spread across major Asian markets. PDG has become the partner of choice for those who require large-scale data storage (hyperscale) in various countries. The growth of PDG in Indonesia is proof that this business is growing rapidly in an important market for our business partners," said Salgame.

Managing Director of PDG Indonesia Stephanus Tumbelaka added, this expansion is an effort to accommodate the needs data center which continues to increase, especially in the consumers, business, and government in the Greater Jakarta area. He also sees that this increasing need is also triggered by the growth of startups in Indonesia, which is among the fastest in Southeast Asia.

With additional capacity data center, it hopes to serve the needs of supply companies cloud, internet, and other sectors that require capacity data center large ones with good flexibility and reliability.

"We see Jakarta as an attractive market, plus Cibitung as a cluster cloud excellence in this area. With the rapid digitization by the government and the private sector, the current market situation is important for the PDG strategy," said Stephanus.

PDG in Indonesia is spread over five areas, including Greater Jakarta (Cibitung and Bintaro), Surabaya, Bandung, and Pekanbaru.

Increased collocation in Jakarta

Based on Structure Research report, collocation market value data center in Jakarta reached $215,6 million in 2020. With this market value, the collocation CAGR rate data center in Jakarta is projected to reach 23,7% in 2025. Taking into account data center Built in 2020, the collocation market in the Indonesian capital is estimated to have a capacity of 72MW.

This projection also makes Jakarta a market with large-scale data center needs (hyperscale) in quick time. This is because Jakarta is the center of national economic activity, the basis of the central government, and business enterprise big.

According to this report, collocation is considered to be the right option for developing countries, such as Indonesia, who want efficiency in managing their business. Meanwhile, East and Central Jakarta are noted to have the most established data center clusters compared to other areas.

With the condition of internet infrastructure that is not evenly distributed in Indonesia, Structure Research mentions all activities online will rely heavily on service cloud large scale, and the infrastructure must also be connected to the facilities data center.

This report reveals that infrastructure cloud large-scale and collocation services in Jakarta are still in their early stages. This condition finally encouraged a number of foreign players, such as Alibaba Cloud and Google Cloud, to enter this segment.

Alibaba Cloud is listed as the first hyperscale platform to enter the Jakarta market in 2018, while Google Cloud brings services cloud their first regional visit to Jakarta in 2020.

"In the period 2020-2021, we will see a large-scale aggressive expansion of Alibaba and Google in expanding infrastructure cloud they are in Indonesia," the report said.