Singtel partners with Telkom, AIS on ASEAN data centre push

Singtel AIS Telkom data centres
Server administrator looking after data centre. Image by Yacobchuk | Bigstockphoto

Singtel is expanding its data centre capabilities across Southeast Asia through a partnership with Telkom in Indonesia and signing a joint agreement with AIS in Thailand.

These moves are designed to capitalize on the robust growth of the ASEAN economies and the increasing demand for digital transformation and cloud adoption.

A crucial part of the strategy is the creation of a data centre platform that will work with local partners to build and acquire data centres in the region.

The new data centres will be equipped with the latest technologies and systems to meet the growing demands of enterprises in the region.

Telkom’s portfolio of 27 data centres in Indonesia and the region will be placed in the data centre platform, supported by strategic collaboration on development opportunities and the exploration of bringing third-party investors or partners into the platform.

The agreement with AIS and Gulf Energy will see the telcos jointly develop data centres in Thailand that will offer hyperscale facilities and colocation services. This will support the country’s growing digital economy and meet the needs of enterprises for reliable and secure data storage.

“The inclusion of AIS in the partnership will help strengthen and accelerate plans to build Thailand’s leading data center business and capture the rapid growth in demand for digital infrastructure in Thailand from both local enterprises as well as hyperscalers,” the companies announced.

In Singapore, Singtel’s top-tier data centres, DC West and Kim Chuan 2, will be carved out into a separate Singtel-owned entity with approximately 60 MW of capacity. This will allow the telco to offer its customers a full range of data centre services, from colocation to managed services.

Late last year, analysts received Singtel’s data centre ambitions with optimism, believing that the strategy is beneficial to Singtel, which has been on a straight four-year decline in its full-year core earnings.

“As businesses rapidly digitalize, and with the growing adoption of IoT [Internet of Things], artificial intelligence and 5G across the region, demand for high-quality data centres is on the rise. This partnership with Telkom is an important step for our data centre strategy, bringing together the prime assets, expertise and networks of two market leaders in data centre operations in Indonesia and Singapore,” said Yuen Kuan Moon, group CEO of Singtel.

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