APAC Data Centre H2 2023 Update

CENTRAL JAKARTA

ASIA PACIFIC ESTABLISHED MARKET

CIKARANG

KEY INDICATORS*

202MW IN OPERATION 34% COLO VACANCY

20 OPERATORS, 43 DATA CENTRES 542MW UC / PLANNED

AH152 - BOGOR

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Colo Hyperscale Cloud Telco

MARKET OVERVIEW Indonesia’s data centre market continues to grow, buoyed by the government investment into the country’s digital economy and its acceleration of digital transformation across all ministries, government agencies, and state-owned enterprises. Coupled with the huge domestic demand for digital services that is also propelling the data centre industry Greater Jakarta continues to rapidly transform into a global data centre hub. Although Batam, due to its close proximity to Singapore is increasingly becoming popular, Jakarta, the current capital of Indonesia until the future capital will be inaugurated in late 2024, and its surroundings of Greater Jakarta, takes up more than 90% of Indonesia operational IT capacity at 202MW, an almost 20% increase since our last update in H1 2023. Since the government started to ease its stance on data centre regulations in recent years, Jakarta offers promising investment prospects with government provided tax incentives and exemptions to boost the digital economy. In addition, the government is continuing its efforts to promote data localisation in Indonesia and the Indonesian Ministry of Communication and Information Technology (Kominfo) has released a draft proposing amendments to the country's data protection regulations. They are now seeking public comments on these proposed changes, reflecting an effort to enhance data privacy and security in Indonesia. Hyperscale activities have previously been focused on East Jakarta, around the availability zones of AWS and Microsoft towards the Bekasi / Kaarawang corridor, east of Jakarta where greenfield developments have become increasingly popular due to better infrastructure and lower land prices. However, land availability in established industrial estates are starting to decrease due to the influx of data centre development. With many facilities coming live in 2024, competition is expected to be strong in Greater Jakarta and exert pressure on pricing in the market Regarding sustainability, the country aims to accelerate renewable energy production. The Just Energy Transition Partnership (JETP), a US$20B initiative involving Indonesia, the U.S., and Japan, aims to retire coal-fired power plants and promote renewable energy for carbon neutrality by 2050.

KARAWANG JATILUHUR

ECOSYSTEM DEVELOPMENTS • Bersama Digital Data Centre plans to build a 32MW tier IV data centre, BDDC JST1 in Jatinegara, East Jakarta • EdgeConneX received US$403.8 million in sustainability-linked (SLL) financing Sumitomo Mitsui Banking Corporation (SMBC) by for its 120MW data centre campus development in Jakarta. The financing represents the first-ever in Indonesia’s data centre market, being the inaugural SLL transaction for EdgeConneX in the region. • NEC Corporation is set to construct the Patara-2 submarine cable system in collaboration with Telkom Indonesia to enhance international connectivity, supporting the growing demand for high-speed data transmission in the Asia-Pacific region. • Princeton Digital Group has launched its 6th facility of 22MW hyperscale data centre facility (JC2) in Cibitung. They have also signed an energy deal with PT Cikarang Listrindo Tbk to power one of its 30MW data centres with biomass-powered capcity, the first of its kind in Indonesia. They are also reportedly planning to raise $1 billion in debt financing to support their data centre expansion plans in Indonesia. • Tencent Cloud announced its collaboration with Digital Edge , to improve connectivity via integration with the Edge Peering Internet Exchange in Jakarta as a part of its commitment to foster connectivity and strengthen digital infrastructure in emerging markets