Digital Realty is making its inaugural entrance into the Indonesian data center market by forming a joint venture with Bersama Digital Infrastructure Asia (BDIA). The new entity, named Digital Realty Bersama, will be responsible for developing and operating data centers throughout Indonesia.
As part of the agreement, Digital Realty has invested approximately $100 million for a 50% stake in BDIA’s existing data centers and land designated for future expansion. This joint venture encompasses a connected campus that includes the CGK11 data center in central Jakarta and another facility, CGK10, located in west Jakarta. The CGK11 center, which initially launched with a 5 MW IT load capacity, is projected to scale up to 32 MW in its next phase of development.
Angelo Syailendra, CEO of Digital Realty Bersama, emphasized that the new venture aims to deliver cutting-edge, highly connected data center capabilities in central Jakarta, supporting the region’s anticipated growth.
Digital Realty currently operates around 300 data centers across more than 25 countries. This collaboration marks the company’s first step into the Indonesian market, where it intends to facilitate the rapid progression of the nation’s digital economy.
This announcement adds to a series of significant developments in Indonesia’s data center landscape. In October 2022, Equinix committed over $70 million to the market, while Microsoft recently announced plans for a $1.7 billion investment to enhance the country’s cloud computing AI infrastructure. Additionally, Oracle Corporation is reportedly engaging in discussions with the Indonesian government concerning the establishment of a cloud services center.
Recent research indicates that the Jakarta colocation market alone is expected to generate $499 million in 2025, with a compound annual growth rate of 11% over the next five years. Verena Lim, CEO of Macquarie Group’s Asia operations, remarked on the sector’s attractiveness, noting the exponential growth in data consumption and the substantial capital needed to meet infrastructure demands.
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