Singtel to build first data centre in Indonesia with Telkom, Medco Power

SINGTEL : Z74 0%has partnered with Indonesian telecommunications player Telkom and energy company Medco Power to build its first data centre project in Indonesia.

This will be the third data centre market that the local telco has entered as part of its regional data centre strategy to “address digital infrastructure demand critical to Asean’s growth”, said Singtel in a statement on Wednesday (Dec 21).

The data centre will be majority owned by Telkom, Indonesia’s largest telco, while Singtel and Medco Power will be minority shareholders.

Singtel had earlier in April signed a memorandum of understanding with Telkom to collaborate in the area of data centres.

The new hyperscale data centre will be located in the Kabil Industrial Estate along Batam’s eastern seaboard. The campus will be developed in three phases on an 8-hectare site and have a total capacity of 51 megawatts (MW) when completed, and will deliver about 20 MW in the initial phase.

The data centre was built to the latest standards of reliability, security and sustainability, with dual-source power including clean and renewable energy from Medco Power, said Singtel.

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It will also be provided with the best connectivity through Telkom and Singtel to serve hyperscalers, multinationals and local businesses in Indonesia and Singapore.

“This strategic partnership with Telkom and Medco Power in Batam marks our first foray into the data centre market in Indonesia,” said Andrew Lim, Singtel’s chief commercial officer for its regional data centre business.

“As South-east Asia’s largest digital economy, Indonesia is core to our expansion plans into high-growth markets. Our track record in designing, building and operating data centres, combined with Telkom and Medco Power’s deep expertise in their respective fields, will prove a powerful partnership,” he added.

Aside from Indonesia, Singtel is also developing a data centre in Thailand with partners Gulf Energy and AIS. It is also adding capacity in Singapore with a new building in Tuas.

Both data centres are expected to begin operations by 2025.

Shares of Singtel closed flat at S$2.56 on Wednesday’s close after the announcement.