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INDONESIA POISED FOR DATA CENTRE GROWTH AS COUNTRY BEGINS SHIFT TO OUTSOURCING
As the third largest data centre market among south-east Asia ’ s four principal economies , and having both strong international cable connectivity and an active Internet Exchange , Indonesia could be poised for further growth . A new report from BroadGroup , Data Centers Indonesia , suggests that the country offers potential , development space and an attractive local economy to overseas investors and enterprises .
New facility build has been led so far by local companies , but overseas investment has also occurred notably by Equinix and NTT Communications .
However , the market also confronts a number of challenges for data centres . Power developments have not been as fast , with infrastructure largely based on coal , and although plans are in place to develop further significant clean power supply , this could take another four years or more to realise .
Enterprise outsourcing in common with other Asian markets is underdeveloped which demonstrates there is much to go , but also reflects the stage of evolution in data centres in the country .
‘ Indonesia is often mentioned as a promising market for data centre growth ,’ commented Philip Low of BroadGroup , the report researcher . ‘ It holds tremendous potential as demand and usage shifts from early reliance on local mobile driven data , to third party outsourcing with overseas enterprises which we will see over the next few years . The power issues will need to be resolved in the interim .’
The report suggests that Indonesia has many advantages for data centre growth which could yield a further 34 per cent in terms of space over the next two years . Significant advances in outsourcing may yet be driven at a faster rate as sheer demand overtakes sensitivities about data privacy and security .
Indonesia ’ s data centre market could be poised for further growth .
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