Digital Edge has begun construction of a 23-megawatt data centre in Jakarta, marking the Singapore-based startup’s third project in Southeast Asia.
EDGE2 will offer 3,430 cabinets and cater to growing demand for applications from cloud-driven hyperscale deployments, local and international network providers and financial services firms, Digital Edge said Wednesday in a release. When completed in the fourth quarter of 2023, the facility is expected to be the largest data centre in downtown Jakarta.
“The growth opportunities in Southeast Asia are vast and our presence in Indonesia plays an important role in our mission to bridge the digital divide in these high-growth markets,” said Digital Edge CEO Samuel Lee.
The project is set to provide Digital Edge with its second data centre facility in Indonesia, which has become one of APAC’s top expansion markets for global and regional players in digital infrastructure. The firm entered the Indonesian market last June by purchasing a controlling stake in data centre operator PT Indointernet Tbk, which brought with it a 1,500-cabinet facility now dubbed EDGE1.
Virtual Campus Takes Shape
Digital Edge, which launched in 2020 with backing by US private equity firm Stonepeak, said the new project is located less than 3 kilometres (1.9 miles) from its existing facility in Jalan Kuningan Barat, the most carrier-dense area in Jakarta.
EDGE2 will form part of a virtual campus with EDGE1 and enable clients to take advantage of the network density and internet exchanges already present at its initial project in the country, the company said. The new server facility will be operated by a subsidiary of Indonesian infrastructure provider PT Indointernet Tbk, known as Indonet for short, which now operates as a unit of Digital Edge.
The project is near major tech and financial hubs supported by multiple fibre paths from different service providers running to the site, allowing customers to benefit from low latency connectivity.
“In line with the growth of the digital economy and data usage in Indonesia, there will be greater requirements for low latency applications which require IT workload situated closer to the end users,” said Toto Sugiri, founder and chairman of Indonet. “EDGE2 provides the capacity and connectivity required to optimise high volumes of data with minimal delay, owing to its downtown location and Indonet’s highly connected network infrastructure.”
In line with Digital Edge’s ESG strategy, the data centre incorporates green design principles to reduce its carbon footprint. The development has an annualised power usage effectiveness — a metric that measures the energy efficiency of a facility — of 1.27, aided by Nortek’s StatePoint liquid cooling technology.
“Our cutting-edge and environmentally conscious data centre design, construction and operations expertise combined with Indonet’s network services and access to dark fibre make a winning offer to local and international customers looking for support to grow their digital presence in Indonesia,” Lee said.
Southeast Asian Scramble
Elsewhere in Southeast Asia, Digital Edge set up a $100 million joint venture with the Rufino clan’s Threadborne Group family office to build a 10MW data centre in Greater Manila, in a deal announced last December.
Backed by Manhattan-based private equity firm Stonepeak, Digital Edge has secured more than $1 billion in committed capital to establish its pan-Asian digital infrastructure platform, which now extends to at least 14 data centre projects in five countries with 182MW of total power capacity.
Last year, Digital Edge paid $165 million to acquire a controlling interest and become the largest shareholder in Sugiri’s Indonet, a company that owns significant self-built fibre assets in the Jakarta metro area and offers internet connectivity, local loop, cloud access and co-location services.
Regional players Logos, NTT and ST Telemedia Global Data Centres have announced their own data centre projects and acquisitions in Indonesia, with Singapore-based Princeton Digital Group unveiling its third development in the country in August of last year.
Most recently, US-based EdgeConneX entered the Indonesian market with the acquisition of a local data centre joint venture from Mitsui and Lippo Group’s PT Multipolar Technology. The deal gave EdgeConnex, which is backed by Swedish private equity firm EQT, ownership of a 5MW Jakarta facility with an adjoining site that the firm plans to expand into a 90MW hyperscale data centre campus.