Indonesian Telecom Giant SingTel Secures Landmark Data Center Construction Deal: Insights From ZDNet

Singtel has unveiled plans for its first data centre in Indonesia, where it hopes to tap growing demand for digital and cloud services. It has signed up local parters Medco Power and Telkom, the latter of which will hold majority ownership of the new facility.

Both Singtel and Medco Power will be minority shareholders of the hyperscale data centre, to be located in Kabil Industrial Estate along Batam’s eastern seaboard.

To be developed in three phases on a site spanning eight hectares, the data centre would have a total capacity of 51MW (megawatts) when fully completed, Singtel said in a statement Wednesday. The initial phase would see the campus operating at 20MW, the telco said.

It added that the facility would meet latest industry standards on security and sustainability, with dual-source power including renewable energy from Medco Power.

Singtel’s chief commercial officer of regional data centre business, Andrew Lim, said: “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.”

The Asean market’s digital economy is estimated to be worth $130 billion by 2025, according to the latest e-Conomy SEA report from Google, Temasek, and Bain & Company. This is further anticipated to drive Indonesia’s data centre market to a growth rate exceeding 11% annually to $2 billion by 2025, Singtel said, pointing to research from Frost and Sullivan.

Elsewhere in Asean, Singtel also is adding capacity to its Singapore data centre as well as constructing a 20MW data centre in Thailand alongside local partners Gulf Energy and Advanced Info Service (AIS). The Thai facility is slated to begin operations by 2025.

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