Carrier-neutral data centre company, Digital Edge (Singapore) Holdings, through its wholly-owned subsidiary, Digital Edge (Hong Kong), has acquired a controlling interest in Indonesia’s PT Indointernet Tbk (“Indonet”) to the tune of US$165 million.
Indonet is a fully licensed facilities-based carrier that owns self-built fibre assets in the Jakarta metro area and offers a full suite of Internet connectivity, local loop, cloud access, and co-location services.
Indonet recently commissioned the EDGE1 data centre with 1,500 racks and cabinets (cabs) at Jalan Kuningan Barat, the most carrier dense area in Jakarta, bringing much needed capacity to this strategic location. EDGE1 is designed and built with the latest technology and can fully support customer High Power Density deployment.
“This strategic partnership marks our initial entry into Southeast Asia. It enables Digital Edge to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer Indonesian firms a strong regional platform to expand outside of the country,” said Samuel Lee, chief executive officer of Digital Edge.
Structure Research forecasts Jakarta’s colocation market to reach US$625 million by 2025, growing at a CAGR of 23.7% between 2021 and 2025. The combination of Indonesia’s rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of start-up companies, is driving this demand for colocation and new data centres.
In an interview on Data Center Knowledge, Philbert Shih, managing director at Structure Research, was quoted as citing unnamed sources in Asia-Pacific as forecasting Indonesia to almost triple in size within five years, driven primarily by hyperscale cloud platforms.
“With its full suite of telecom licenses, extensive dark fibre assets, network services and central location of its EDGE1 data centre, Indonet will enable Digital Edge to develop sophisticated solutions for its interconnect-focused customers, such as network, cloud, and financial service customers,” said Andy Rigoli, chief operations officer of Digital Edge.
Digital Edge follows a similar recent announcement by ST Telemedia Global Data Centres (STT GDC), which partnered with Triputra Group and Temasek to build data centres in Indonesia. The first STT GDC data centre is scheduled for completion in Q1 2023 and located in the Greenland International Industrial Centre, in Kota Deltamas, Cikarang, Bekasi.
Digital Edge’s partnership is the third such investment following an agreement to acquire Sejong Telecom’s data centre assets, including one data centre in Gangnam, Seoul and a Cable Landing Station facility in Centum City, Busan. Digital Edge has earmarked US$120 million for its Korea expansion plans.
Digital Edge cited unnamed analyst projections into Japan’s public cloud services market purported to grow by nearly 18.7% annually between 2019 and 2024 to approximately US$26.4 billion, due to direct private and public investment in ICT infrastructure and the Japanese government’s commitment to cloud services.