Indosat Ooredoo Hutchison (IOH), in a significant development for Indonesia’s digital sector, has announced a major acquisition by BDx Indonesia, a joint venture involving Indosat, BDx Data Centers (BDx), and Lintasarta. This move, set to transform Indonesia’s digital landscape, involves acquiring a portfolio of carrier-neutral colocation and edge sites in prominent Indonesian cities including Jakarta, Surabaya, Batam, Medan, Makassar, Bandung, and Semarang.
These data center sites are strategically linked to six domestic and five international subsea cables, amplifying their digital connectivity and reach.
This ambitious IDR 2,625 billion deal (over $168M) is backed by three Indonesian banks – BCA, Bank Permata, and Bank Bukopin, providing the necessary financial support to BDx Indonesia. This move builds on the partnership between Indosat and BDx initiated in 2022, aligning with the Indonesian Government’s Digital Roadmap and infrastructure goals. It also reflects a commitment to leveraging technology for national empowerment. FTI Capital Advisors played a pivotal role as the financial advisor to Indosat in this transaction.
The acquisition would significantly enhance the interconnected ecosystem that BDx Indonesia is cultivating. This network of data centers would foster interconnections between enterprises and various digital entities like cloud providers, content delivery networks (CDNs), and digital finance companies. This integration is facilitated through Internet Exchanges (IXs), cloud onramps, and private interconnects involving multiple telecommunications providers. Such a network infrastructure is instrumental in distributing digitalization across Indonesia, expediting hybrid digital transformations and improving the digital experiences for enterprises, technology firms, and internet users.
150MW+ Data Center Capacity
BDx Indonesia has already made significant strides in upgrading its digital infrastructure. In 2022, four data centers in Jakarta and West Java were expanded, with one site now catering to high-density AI workloads using green hydropower and sustainable liquid cooling technology. The potential for further expansion would be considerable, with most sites having space in existing buildings and adjacent land. Notably, the Batam site is positioned to handle overflow demand from Singapore. BDx Indonesia’s adherence to global operating standards would offer enterprises, cloud providers, and content delivery networks an opportunity to deploy critical workloads closer to the network edge.
Post-transaction, BDx Indonesia’s capacity will surge to over 150MW across ten operational carrier-neutral colocation facilities in major Indonesian cities. This includes a new 15MW facility near Jakarta, set for completion by Q4 2024, and a 100MW hyperscale campus in East Jakarta’s Suryacipta. Additionally, carrier-neutral edge sites across Indonesia’s main islands are being developed with eco-friendly designs, furthering digitalization and benefiting a substantial portion of the population.
All BDx Indonesia data centers are equipped with IX facilities and private network interconnects, including various cloud onramps. This expansion would not only meet the growing digital demands of customers but also align with BDx Indonesia‘s commitment to driving the digital economy.
