Key Takeaways
Global data center solutions provider Digital Realty is officially moving into the Indonesian market.
Through a 50/50 joint venture (JV) with Bersama Digital Infrastructure Asia (BDIA), Digital Realty will contribute around $100 million for a 50% stake in building and developing data centers across the country with plans for future investments. In addition to its equity interest, Digital Realty will receive property management and development fees.
Additionally, BDIA’s Jakarta-based carrier-neutral data center platform, Bersama Digital Data Centres (BDDC), is part of the joint venture and will now operate as Digital Realty Bersama.
As part of leading these efforts, Angelo Syailendra serves as the Chief Executive Officer of Digital Realty Bersama.
“Digital Realty Bersama will provide swift, cutting-edge, and well-connected data center capacity in central Jakarta, designed to support the market’s next wave of growth, driven by high-performance computing and AI-powered advancements,” said Syailendra.
Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty, also shared a positive outlook on the kind of expertise both companies will bring.
“This JV combines Digital Realty’s global data center expertise and scale with BDDC’s local market knowledge and robust connectivity, creating a unique value proposition for our customers,” said Nah.
Encouraging Indonesia’s Growth
The JV also brings PlatformDIGITAL® to Indonesia, Digital Realty’s global data center platform.
PlatformDIGITAL® provides a space for data collaboration and supports businesses in scaling their digital operations. The platform also helps users address/solve data issues, optimizes IT infrastructure, and supports hybrid cloud and AI workflows.
With Indonesia’s digital market growing rapidly — especially among its younger, more tech-savvy, population (85% of Indonesians aged 17-25 are regular internet users) — there’s an opportunity for the platform to help boost the country’s digital economy.
The Southeast Asia region, in general, is experiencing a hyperscale data center boom: In 2023, Indonesia’s colocation market was valued at $362 million. By 2029, it’s expected to exceed $1 billion.
Other key players are making major investments in Indonesia’s digital economy and culture, too. Recently, Oracle shared that it’s in talks with the Indonesian government to establish a cloud services center on Batam Island.
Verena Lim, Co-Head of Asia-Pacific Macquarie Asset Management Infrastructure and Asia Chief Executive Officer of Macquarie Group, said these decisions are completely strategic.
“We consider the Southeast Asia digital infrastructure sector to be very attractive given the exponential growth of data consumption and significant capital requirements for infrastructure to keep pace with demand,” said Lim.
Digital Realty Bersama has already acquired a campus with two data centers: CGK11 in Central Jakarta and CGK10 in West Jakarta. CGK11, which started with a 5MW capacity, will expand to 32MW in its next phase.
