Indonesia: Singtel partners with Telkom to enter Indonesia data center market

Dec 22, 2022 | Posted by MadalineDunn

Singtel has announced that it has entered a strategic partnership with Telkom and energy company Medco Power for its first data center project in Indonesia. The data center campus will reportedly be developed in three phases on an 8-hectare site. With a total capacity of 51 MW when fully built out, it will initially deliver approximately 20 MW.

The signing Memorandum of Understanding (MoU) was witnessed by Indonesia's Vice Minister II of State-Owned Enterprises Kartika Wirjoatmodjo, Singtel Group CEO Yuen Kuan Moon, and Telkom CEO Ririek Adriansyah.

Andrew Lim, Chief Commercial Officer of Singtel's Regional Data Centre business, commented: "This strategic partnership with Telkom and Medco Power in Batam marks our first foray into the data centre market in Indonesia. As Southeast Asia's largest digital economy, Indonesia is core to our expansion plans into high growth markets." Adding: "Our track record in designing, building, and operating data centres, combined with Telkom and Medco Power's deep expertise in their respective fields will prove a powerful partnership."

Lim explained that with its location, ample land capacity, and rich connectivity to Singapore, Indonesia, and other parts of the world, Batam is projected to experience "increasing investment spill-overs as a result of land and power constraints in neighbouring markets."

Further to this, he said: "Jointly developing a best-in-class hyperscale data centre in Batam will provide regional customers with a strong alternative. In fact, our hyperscale customers are looking to grow their cloud computing infrastructure to serve the APAC region while being located near Singapore. This maiden project will also showcase our differentiated one-stop offering to local and international businesses looking for support to grow their presence in Indonesia."

The data center will be majority owned by Telkom, with Singtel and Medco Power will be minority shareholders.