Digital Realty enters Indonesia through joint venture

Datacentre colocation provider Digital Realty has formed a joint venture with Bersama Digital Infrastructure Asia (BDIA) to develop and operate datacentres across Indonesia.

The joint venture, Digital Realty Bersama, will see Digital Realty injecting about $100m for a 50% stake in existing datacentres and adjacent land, primed for future expansion. This investment will bolster Digital Realty Bersama’s presence in the Indonesian market, enabling it to cater to the increasing demand for digital infrastructure.

Digital Realty Bersama will integrate BDIA’s existing Jakarta-based datacentre platform, Bersama Digital Data Centres (BDDC), which operates a connected campus with the newly launched CGK11 datacentre in Central Jakarta and the CGK10 facility in West Jakarta.

CGK11, launched with an initial 5MW (megawatt) IT load capacity and scalable to 32MW, offers customers a robust connectivity hub in the heart of Jakarta’s business district. It provides direct access to a wide range of networks and services, including a direct connection to the Association of Indonesian Internet Service Providers (APJII), Indonesia’s largest internet exchange provider.

This connectivity will be further enhanced by Digital Realty’s ServiceFabric, a service orchestration platform enabling customers to manage complex workflows and orchestrate hybrid IT infrastructure and artificial intelligence (AI) workloads.

“Digital Realty is committed to powering the growth of Indonesia’s digital economy by providing businesses with the critical foundation they need to succeed in the digital age and to leverage emerging technology like AI,” said Serene Nah, managing director and head of Asia-Pacific at Digital Realty. “This joint venture combines Digital Realty’s global datacentre expertise and scale with BDDC’s local market knowledge and robust connectivity, creating a unique value proposition for our customers,” she added.

Digital Realty Bersama will be led by the management team of BDDC, including Angelo Syailendra as CEO and Setyanto Hantoro as chairman. Krishna Worotikan, the former country chief financial officer (CFO) of Microsoft Indonesia, has joined the venture as CFO.

“We are honoured to collaborate with Digital Realty, a global leader in datacentre solutions, to deliver the essential infrastructure that will catalyse Indonesia’s digital economy,” said Angelo Syailendra, CEO of Digital Realty Bersama. “Digital Realty Bersama will provide swift, cutting-edge, well-connected datacentre capacity in central Jakarta, designed to support the market’s next wave of growth, driven by high-performance computing and AI-powered advancements.”

The formation of Digital Realty Bersama comes at a time when Jakarta’s datacentre colocation market is growing. Structure Research, a research and consulting firm, predicts that the market will generate $499m in revenue in 2025, with a five-year compound annual growth rate of 11% and an expected uptake of about 54.6MW.

Besides Digital Realty, other datacentre providers with a presence in Indonesia include DCI Indonesia, BDx Indonesia, Equinix, Digital Edge, NTT and Keppel Data Centres. While most of the country’s datacentre capacity is concentrated in Jakarta, locations such as Batam, which is near Singapore, a regional datacentre hub, has attracted investment as well.

For example, NeutraDC, the datacentre arm of telecoms giant Telkom, is building a new datacentre facility in Batam to capture the spillover demand for datacentre services from Singapore while meeting the domestic needs of Indonesian firms.

The facility will span three campuses over eight hectares, offering a potential capacity of 51MW. Powered by renewable energy from Indonesian power firm Medco Power and equipped with a building management system, it will first offer about 20MW of capacity in the initial phase of the project.