Tuesday, July 16, 2024

Telkom Indonesia, partners invest Rp1.4 trillion in AI-driven data center in Batam

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State-owned telecommunication company PT Telkom Indonesia, in collaboration with SingTel and Medco Power Indonesia, has announced a Rp1.4 trillion (US$85 million) investment to build an advanced data center equipped with Artificial Intelligence (AI) infrastructure in Batam over the next five years.

This initiative, spearheaded by Telkom’s subsidiary in the data center business, PT Telkom Data Ekosistem or NeutraDC, commenced with a piling ceremony at the construction site located in the Integrated Industrial Zone of Kabil, Batam, on Thursday, June 13, 2024.

The piling ceremony marks the initial step in TelkomGroup’s endeavor to establish an AI-based data center, following the groundbreaking event held on December 21, 2022. The facility is projected to begin operations in the third quarter of 2025.

Honesti Basyir, Director of Group Business Development at Telkom, emphasized that this effort is part of Telkom’s broader strategy to transform its digital business, focusing on data centers and accelerating technological innovation in Indonesia, particularly in the field of AI.

“We aim for Batam not only to benefit from Singapore’s overflow but to become a pivotal business center in the region. That is our ambition,” Honesti told a press conference on Thursday.

Bogi Witjaksono, Director of Wholesale & International Service at Telkom, highlighted that the presence of this AI-infused data center will create new opportunities for Indonesian industries to leverage advanced technology.

“The design of this data center differs significantly from what we might have planned 2-3 years ago, ensuring our data center is AI-ready,” he affirmed.

Bill Chang, Director of Nxera, expressed his partnership’s commitment with NeutraDC Batam in pushing technological boundaries and delivering optimal data center solutions tailored to market needs.

“We aim to be part of this digital transformation and contribute to an innovative and sustainable data center ecosystem,” Bill Chang said.

NeutraDC Nxera Batam is designed with robust infrastructure capable of supporting heavy AI workloads efficiently. Its establishment will expand Nxera’s footprint in hyperscale data centers, currently also present in Cikarang and neighboring Singapore, classified under Tier III and IV.

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