Equinix and Astra form new digital infra JV for Indonesia

Equinix and Astra form new digital infra JV for Indonesia
At the JV signing ceremony, April 11, 2023 (from left): Jeremy Deutsch, President of Asia-Pacific, Equinix; Keith Taylor, CFO of Equinix; Chiew Sin Cheok, Director of Astra; and Santosa, Director of Astra. Image source: Equinix

Equinix and PT Astra International have announced a joint venture to develop digital infrastructure in Indonesia – starting with a new IBX data center in Jakarta.

Equinix will control the JV with a 75% equity stake, with Astra taking the remainder. According to Equinix, the JV will leverage its global digital infrastructure experience as well as Astra’s local market experience to help local businesses and multinationals accelerate their digital transformation plans by capitalizing on “new and emerging technologies, such as hybrid multicloud, 5G, IoT, AI, and more.”

Equinix to build new IBX DC in Jakarta

Initially the JV will initially develop and operate a new International Business Exchange (IBX) data center (called JK1) in Jakarta, with further expansion across Indonesia to come later.

JK1 will be located in Jakarta’s Central Business District, and is scheduled to open by the second half of 2024. Equinix says JK1 will feature over 1,600 cabinets and provide more than 5,300 square meters of colocation space once it’s completed. It will also sport a sustainable design to support economic and environmental goals for Indonesian organizations.

Equinix says the JV is intended to align with the Indonesian government’s national digital transformation program, which offers a framework for economic development and demand for digital infrastructure. The government has set a target of enabling 30 million micro, small, and medium-sized enterprises (MSMEs) to go digital by 2024.

Indonesia poised as major cloud hub

Indonesia is poised to become the largest ASEAN colocation market by 2027 as the region continues to witness significant retail demand for colocation coupled with growing hyperscale activity.

Frost & Sullivan forecasts Indonesia’s colocation market to reach a valuation of $1.2 billion by 2027. Analyst firm Twimbit expects Indonesia to become Southeast Asia’s the second largest public cloud market (behind Singapore) by 2026. Major public cloud players like Google Cloud, Amazon Web Services, Microsoft Azure and Alibaba Cloud are certainly big on Indonesia, having announced plans to launch cloud regions there.

Whatever the JV offers Indonesia’s digital economy aspirations, it also adds one more IBX site to Equinix’s global footprint. Equinix says it has over 245 data centers across 71 metros and 32 countries globally. Over 50 are in Asian markets including Australia, China, Hong Kong, India, Japan, Korea, and Singapore.

Related article: OQC sticks a quantum computer in an Equinix data center

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