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Keppel inks Salim Group partnership to establish Indonesian data centre

Keppel inks Salim Group partnership to establish Indonesian data centre

Indonesia has one of the fastest growing data centre markets in Southeast Asia

The IndoKeppel Data Centre 1 facility is expected to be completed over three phases with the centre’s core and shell as well as the first phase fit-out expected to be completed by 2020.

The IndoKeppel Data Centre 1 facility is expected to be completed over three phases with the centre’s core and shell as well as the first phase fit-out expected to be completed by 2020.

Credit: Keppel Corporation

Singapore-based Keppel Group has signed conditional agreements with Indonesia’s Salim Group to jointly develop and operate a high-availability data centre in Bogor, Indonesia.

The IndoKeppel Data Centre 1 (IKDC 1) facility is expected to be completed over three phases with the centre’s core and shell as well as the first phase fit-out expected to be completed by 2020.

The centre will have a gross floor area of approximately 105,300 sq ft with tier-3 concurrent maintainability standards for power and cooling.

The Alpha Data Centre Fund (Alpha DC Fund), managed by Singapore-based Alpha Investment Partners (Alpha) will also provide investment capital for the new development.

The centre is expected to be developed and operated through a 60:40 joint venture between the Salim Group and Keppel Data Centres, with the centre and its underlying 3ha land plot held between the Salim Group (60 per cent) and the Alpha DC Fund (40 per cent).

"The partnership with the Salim Group is a prime example of Keppel Data Centres' strategy of working with strong local players in high growth markets to design and build the robust infrastructure necessary for the digital economy's expansion and future proofing,” said Wong Wai Meng, CEO of Keppel Data Centres.

“We make sure that there is flexibility for growth and future capacity when our customers need it - power, space and connectivity should always be available to allow our customers to continue growing in our data centres."

The initial 3ha site is expected to be the first phase of a three-phase development that will eventually encompass a much larger 7ha development, providing flexibility to cater for the increasing demand in Indonesia’s data usage.

"The Alpha DC Fund is pleased to partner the Salim Group for a quality data centre project in a high-growth market such as Indonesia,” said Alvin Mah, CEO of Alpha Investment Partners.

“The country's population of more than 260 million makes it the largest base of internet users in the region.

"With internet penetration rate currently at about 50 per cent, e-commerce and cloud service providers are realising the market potential and are looking to make inroads, in turn bolstering data centre demand.”

"Unique asset classes such as data centres continue to attract strong investor interest. We look forward to adding another quality asset to the Fund's portfolio with the aim of delivering the best returns to investors."

Market potential

Indonesia has one of the fastest growing data centre markets in Southeast Asia with a compound annual growth rate (CAGR) of 35 per cent.

Furthermore, positive growth drivers such as data onshoring regulations, increased smartphone adoption and the growing popularity of e-commerce are expected to generate healthy demand for quality data centres with high resiliency.

The region as a whole has seen renewed investment in new data centres with Google announcing their third regional data centre and Facebook recently announcing their first.

"The Salim Group is one of Indonesia's biggest conglomerates with many diversified assets ranging from food, banking and telecommunications,” said Sugiharto Darmakusuma, Director of Salim Group. “For the past decade, the group has been keen on preparing and expanding its Salim Digital Ecosystem to support the nation's transformation to Industry 4.0."

"We have been actively investing in fibre connectivity for the past decade and now we are, I believe, one of the very few players in Indonesia who have this capability.

"We have fibre optics cables laid out all across Sumatra, Java all the way to Bali. We also have invested in our own submarine cables from Java to Singapore.”

“We are expanding our data centres to achieve a global presence and we believe that Keppel Data Centres is the right partner to achieve that.

"With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres' presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution."


Tags indonesiaSalim GroupKeppel Group

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