Saturday, September 23, 2023

Equinix Extends to Indonesia with $74M Data Center Investment

By ET Bureau - October 07, 2022 4 Mins Read


To support increasing demand for the digital services essential to powering today’s businesses, Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company™, today announced its expansion to Indonesia with plans for an approximately $74 million International Business Exchange™ (IBX®) data center in the heart of Jakarta. Through this expansion, Equinix will enable Indonesian businesses, as well as multinationals with a presence in Indonesia, to leverage its trusted platform to bring together and interconnect the foundational infrastructure to power their businesses.

Driven by rapid business digitalization and a substantial digital-savvy population, Indonesia has emerged as Southeast Asia’s largest digital economy in value,1 and is expected to be a key hub of interconnection in the region. With major cloud service providers, such as Google Cloud, Amazon Web Services (AWS), Microsoft Azure and Alibaba Cloud, launching cloud regions in Indonesia, the country is forecast to become the second largest public cloud market in Southeast Asia.2 These trends collectively raise the need for increased digital services and data center services capacity in Indonesia.

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Jeremy Deutsch, President, Asia-Pacific, Equinix said: “Our IBX data center in Jakarta will add a strategically important, high-growth market to Equinix’s extensive network of interconnected data centers across the world. Having a presence in Indonesia allows Equinix to provide digital infrastructure that enables local businesses to tap growth opportunities abroad and support global organizations looking to access the expanding Indonesian digital economy. We look forward to working closely with local authorities, network providers and the broader industry ecosystem players to help unleash Indonesia’s digital potential.”

Highlights / Key Facts

  • The eight-story facility is scheduled to open by the second half of 2024, expected to provide more than 1,600 cabinets and more than 5,300 square meters of colocation space when fully built. Located in Jakarta’s Central Business District and in close proximity to major internet exchanges, the new IBX data center will provide Indonesian businesses and foreign businesses operating in Indonesia with the digital infrastructure and vibrant ecosystems for optimal performance.
  • The facility will incorporate sustainability into its design, leveraging innovative technologies such as cool array to support economic and environmental goals for organizations in Indonesia. This is part of Equinix’s Future First strategy that underscores the company’s commitment to green the digital economy.
  • Equinix’s expansion to Jakarta is aligned with the Indonesian government’s digital transformation initiatives, boosting the country’s digital infrastructure objectives according to goals set out in the Indonesia Digital Roadmap 2021–2024.3
  • Platform Equinix® currently spans 32 countries around the world, and this new data center in Jakarta will serve as a business conduit for local and global enterprises, cloud & IT service providers and network service providers.
  • Inclusive of this recent announcement, Equinix has 50 major projects that are currently underway across 35 metros in 22 countries, including new data center builds in Dublin, Montréal, New YorkParis and Warsaw. Most recently, Equinix entered Chile and Peru with a total of five IBX data centers, with an enterprise value estimated at approximately $735 million. The company has also completed its acquisition of West African data center and connectivity solutions provider MainOne for an enterprise value of $320 million.
  • In Asia-Pacific, Equinix announced an initial investment of over $86 million to build Equinix’s third IBX data center in Mumbai and an investment of over $64 million for its first IBX data center in Chennai.
  • Today, the global footprint of Platform Equinix spans 248 data centers across 71 metros and 32 countries, providing digital infrastructure for more than 10,000 of the world’s leading businesses, including more than 50% of Fortune 500 companies. In Asia-Pacific, Equinix currently has 51 data centers in key metros across AustraliaChinaHong KongJapan, Korea and Singapore.

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