Batam emerges as data centre hub, rivals Johor for investments

[JAKARTA] Indonesia’s Batam is emerging as a prime destination for global investors in the data centre sector, positioning itself as a formidable competitor to Malaysia’s Johor for spillover investments from Singapore.

The competition with Johor Bahru is set to intensify, especially with the upcoming inauguration of a special economic zone (SEZ) in the Johor city in September, underscoring the need for Batam to accelerate its preparations to stay competitive.

Batam is planning four additional hyperscale data centres in Nongsa Digital Park, a dedicated SEZ aimed at becoming a hub for digital investment, said Muhammad Rudi, mayor of Batam and chief of the Batam Development Authority, in an interview with The Business Times.