Tencent Launches Data Center in Indonesia, to Stir up Competition of Local Cloud Computing

Tencent Cloud announced its first data center (named: Internet Data Center) in Indonesia located in the CBD Jakarta. Currently, the company says that its cloud computing service infrastructure covers 27 regions with 61 availability zones.

Its expansion to Indonesia is not for random reasons, with the fastest growing public cloud market in Asia Pacific based on the data, Indonesia has a CAGR of 25% and it is expected to increase its market size to $0.8 billion in 2023.

Tencent Cloud International's SVP, Poshu Yeung said that its young-domination of population structure is believed to continue driving the increase of the internet market. The existence of cloud computing services will also strengthen the infrastructure in various Tencent-owned applications in Indonesia, including Joox and WeTV.

In addition, the company also stated that several financial institutions have started using their cloud computing services, one of which is the Neo Commerce Bank which utilizes the Tencent Distributed Database feature.

Trend of building data center

Previously, in late February 2021, Microsoft has just announced its first data center in Indonesia. Based on the IDC research, Microsoft's investment is estimated to generate new revenue of up to $6.3 billion (for all product lines) from the ecosystem of customers and partners in Indonesia.

Other players have also started investing in building data centers in Indonesia, including Alibaba, Amazon and Google.

Previously, various parties - including regulators - have encourage global technology companies to plant data centers in Indonesia. Although it has experienced a long delay due to inadequate infrastructure and human resources. However, along with the growing national digital industry, which implies an increase in cloud computing services, these global providers have decided to present their data center and availability zone in Indonesia.

Local players pride

Some local companies also offer cloud computing products to support digital businesses. There is Telkomsigma (a subsidiary of Telkom), recently they have also entered the SME scale market through the Flo Cloud service. There is also Biznet Gio which strives to penetrate the market.

Recently, along with the launch of a new feature specifically for SMEs, Biznet Gio announced its third data center located in Banten. Was build to fulfill customers' need that requires high availability features as well as data storage in more than one data center. The first and second data centers are in Jakarta (MidPlaza) and West Java (Technovillage, Cimanggis).

In additon, Init-6 has recently provided IDR72 billion in seed funding to IDCloudHost, a public cloud computing service provider for SMEs in Indonesia.

It is clear that local players can have a strong unique value proposition - both in terms of their understanding of the local market, the need for regulation, and strong infrastructure fundamentals. Biznet Gio also stated, with their infrastructure capabilities, they claim to be able to provide connectivity between data centers through a closed network (private network) of 10 Gbps without passing through the internet network, which is provided without additional fees or additional installation to customers.

-Original article is in Indonesian, translated by Kristin SiagianHeader Image: Depositphotos.com