Published on November 8, 2023, 11:01 pm

Equinix and PT Astra International have joined forces to establish a joint venture aimed at developing digital infrastructure in Indonesia. With Equinix holding a 75% equity stake and Astra International holding 25%, this collaboration aims to provide the necessary digital infrastructure for both multinational corporations and local businesses to accelerate their digital transformation journey.

The initial project of this joint venture will focus on the development and operation of an International Business Exchange (IBX) data center called JK1 in Jakarta. The eight-story JK1 IBX data center is scheduled to open by the second half of 2024, offering over 1,600 cabinets and more than 5,300 square meters of colocation space.

Strategically located in Jakarta’s Central Business District and near major internet exchanges, JK1 will offer local and foreign businesses the essential digital infrastructure and vibrant ecosystems required for optimal performance.

Jeremy Deutsch, President of Asia-Pacific at Equinix, emphasized the Indonesian government’s commitment to accelerating digital transformation across the nation. He stated that this joint venture leverages the rising potential of digitalization and demonstrates Equinix’s ongoing dedication to serving Indonesia’s community with scalable capacity that can meet computational, storage, and edge requirements.

Equinix already operates 51 data centers across Asia Pacific, positioned in key metros such as Australia, China, Hong Kong, India, Japan, Korea, and Singapore. By collaborating with Astra International – known for its deep local knowledge and experience across various sectors in Indonesia – Equinix believes this joint venture is well-positioned to unlock the significant potential within the Indonesian data center market.

Indonesia’s national digital transformation program provides a framework for economic development while increasing demand for digital infrastructure. The government aims to have 30 million micro, small, and medium-sized enterprises (MSMEs) go digital by 2024. As a result of these efforts, it is projected that Indonesia will become the largest ASEAN colocation market by 2027, with an estimated valuation of US$1.2 billion.

Moreover, major cloud service providers such as Google Cloud, Amazon Web Services, Microsoft Azure, and Alibaba Cloud have announced plans to establish cloud regions in Indonesia. This burgeoning cloud market is anticipated to make Indonesia the second-largest public cloud market in Southeast Asia.

Considering these factors, the Equinix and Astra joint venture is strategically positioned to tap into this high-potential market. By combining Equinix’s expertise in global digital infrastructure with Astra’s extensive experience in operating within Indonesia, this partnership aims to empower local businesses and multinational corporations to enhance their digital capabilities and capitalize on emerging technologies like hybrid multicloud, 5G, IoT, AI, and more.

Astra International’s President Director, Djony Bunarto Tjondro believes that this joint venture will strengthen Indonesia’s data center infrastructure while providing comprehensive data centers that are integrated, modern, easily accessible, and operated with a focus on sustainability.

The JK1 data center will prioritize sustainability by incorporating innovative technologies such as Equinix’s cooling array. This approach aligns with both Equinix’s commitment to reaching climate neutrality by 2030 through renewable energy usage and Astra’s 2030 Sustainability Aspirations.

The partnership between Equinix and Astra marks a significant milestone for the digital transformation landscape in Indonesia. As businesses strive to adapt to the rapidly evolving digital landscape and harness its immense potential for growth and innovation, robust digital infrastructure becomes a fundamental requirement. With their combined expertise and commitment to sustainability, Equinix and Astra are well-positioned to deliver state-of-the-art digital infrastructure solutions that will drive Indonesia’s digital future forward.

This article was originally published on FutureCIO.

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