Friday, February 23, 2024

EdgeConneX launches data center in Indonesia to tap into growing digital economy

Reading Time: 2 minutes
Journalist IBP


Mahinda Arkyasa



EdgeConneX, a hyperlocal to hyperscale global data center company based in the United States, has inaugurated a data center in Indonesia, specifically in Cikarang, West Java.

Randy Brouckman, the Chief Executive Officer and Co-Founder of EdgeConneX, announced that the data center would require hundreds of employees across various roles, including construction, management, operations, and information technology.

He highlighted Indonesia’s Vision 2045, a government initiative that outlines a comprehensive digitalization roadmap aimed at using digital technology to improve the lives of citizens, stimulate economic growth, and enhance global competitiveness.

As the largest city in Indonesia with a population of over 33 million people, Jakarta is seen as a crucial gateway in Southeast Asia for commercial, trade, and technology activities.

With an extensive fiber network, high power density, low-latency interconnectivity, and global peering options, Jakarta is a high-growth market with significant opportunities for major cloud companies to accelerate access to cloud services, content delivery, and connectivity services.

“I believe that with a young population and a digital-savvy population, combined with critical infrastructure like this data center, the goal to double the country’s digital economy value by 2025 is possible,” Brouckman stated. 

On the same occasion, he announced that the company had secured US$ 403.8 million in Sustainability-Linked Senior Facilities, which would expedite the company’s expansion plans and environmentally friendly initiatives for its data center footprint in Jakarta, Indonesia.

“We made this investment in Jakarta because Indonesia has a very promising digital future,” said Brouckman. 

The innovative agreement includes foreign loans in US dollars, paving the way for enhanced sustainability capabilities, including the use of renewable energy and improved security measures for EdgeConneX’s multiple data center facilities in the region.

As a result, the hyperscale campus capacity in Jakarta will exceed 120 MW. Joe Harar, the Chief Financial Officer (CFO) for EdgeConneX, noted that this funding provides greater flexibility and rapid financing capacity to support tailored data center solutions for global enterprise customers.

“With nearly US$ 5 billion raised over the past 18 months, we are ready to realize our existing data center expansion,” said Harar. 

Additionally, the company is well-positioned to quickly acquire land and necessary resources to support customer data center needs.

Indonesia’s potential for digital expansion

Luhut Binsar Pandjaitan, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, stated that the country has future agendas in industrialization, decarbonization, affordable and high-quality education, economic inclusivity, digitization, and infrastructure.

“Advanced facilities like those developed by EdgeConneX are critical in attracting and driving connectivity, cloud computing, artificial intelligence (AI), and other essential IT applications from leading companies,” said Luhut.

By continually fostering cutting-edge technology ecosystems, Indonesia’s economy will continue to grow rapidly.

Wewoen Willyani Salim, the Director at Indies Capital Partners, remarked that Indonesia is experiencing transformative growth in its digital economy. 

She believes that by enabling the digital economy through cloud computing and expanded data center infrastructure like EdgeConneX’s facility, Indonesia is opening doors to new opportunities, empowering businesses, and propelling the region towards a brighter future.

Philbert Shih, the Founder and Managing Director of Structure Research, added that Indonesia has a strong demographic, a rapidly growing local tech sector, domestic hyperscale infrastructure, and is at the early adoption curve for outsourced infrastructure services like cloud computing and data centers. He stated that Indonesia possesses incredible long-term potential, with Jakarta at the center of this growth.

“Indonesia is home to all major hyperscale clouds in the United States and China, as well as emerging social media and web-scale tiers that will combine to create an incredible demand volume for hyperscale data centers,” he said.

Journalist IBP


Mahinda Arkyasa




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