The recent explosion of market interest across Southeast Asia has launched several new and emerging data center cities, with global cloud platforms pouring into the region to service an array of applications used by increasingly tech-savvy populations. Where most development simply headed straight to well-connected Singapore in the past, the imposition of an official moratorium on new data center builds in 2019 led to an outpouring of interest in other cities, particularly considering comparatively lower construction and power costs leading to higher operating margins. Southeast Asia has in turn become one of the fastest-growing data center regions globally, with an extremely bullish outlook for the next decade.
Jakarta is the star of the region, finally acknowledged as a major force rather than just a place to shift workloads from Singapore. A global megacity and undisputed business and government hub for Indonesia, the fourth-most populous country in the world, the Jakarta wholesale market has rocketed from less than 40 megawatts five years ago to nearly 200 megawatts currently, scaling to potentially triple this size as new projects come online over the next five years.
EdgeConneX recently closed on $403.8 million deal in Sustainability-Linked Senior financing, which paves the way for increased sustainability capabilities, including power efficiency, renewable energy sources, and enhanced safety measures for EdgeConneX to develop multiple data centers in the Jakarta greater metro region. This will bring the EdgeConneX Indonesian hyperscale campus in Jakarta to over 120MWs.
A secondary Indonesian market is already forming in Batam, thanks to its proximity to Singapore and the local government’s willingness to prioritize the data center market.
Kuala Lumpur serves a similar focus for Malaysia, with the city’s Cyberjaya suburb specifically arranged for tech applications from data centers to manufacturing space and much more. Financial firms have mixed deployments between this suburb and the rare opportunity in downtown Kuala Lumpur, though both areas of the city have site sizes that pale in comparison to a new market forming in the country’s south: Johor Bahru. With plentiful land and power in a swathe of industrial parks throughout the area, Johor offers significant development opportunities just across the Strait from Singapore for quick access for major deployments.
Entering each of these markets requires a partner that understands and has proven value across the region, particularly in large project completion. EdgeConneX has engaged in hundreds of megawatts of build-to-suit solutions in diverse cities across the globe, with a recent focus on Southeast Asia after establishing a regional headquarters in Singapore. With flexible designs available and the ability to pull from a fully global supply chain, EdgeConneX is an excellent assistant for the largest deployments in the hottest emerging markets.
Find out more about our current data center site in Cikarang, part of greater Jakarta, here: https://www.edgeconnex.com/locations/asia-pacific/jakarta/
Find out more about EdgeConneX custom build solutions here: https://www.edgeconnex.com/data-centers/build-to-order/
