Equinix Expanding to Indonesia With $74M Data Center

JAKARTA, Indonesia and REDWOOD CITY, Calif. — The digital infrastructure company Equinix is planning to grow its global footprint by building a data center in Indonesia. 

Equinix plans to develop a $74-million International Business Exchange (IBX) data center in Jakarta’s central business district, according to the company this month. 

Equinix will use the data center to connect data infrastructure for both Indonesian companies and organizations with a presence in Indonesia. 

The IBX center will provide 5,300 square meters of colocation space and is scheduled to open by the second half of 2024. Equinix also plans to incorporate sustainable technologies, like cool array cooling, for energy efficiency. 

Indonesia data center market 

Equinix intends to expand cloud and data services to Indonesia, as the digital market there grows. 

For instance, the government of Indonesia has digital transformation initiatives in place that  should benefit from Equinix’s data center, and the facility is in alignment with the “Indonesian Digital Roadmap 2021-2024.” Jakarta was also named as a data center market in Cushman & Wakefield’s 2022 “Global Data Center Market Comparison.” 

Equinix expects Indonesia to be a key connectivity hub in its global network. Other cloud providers have built infrastructure in Indonesia, too: AWS, Microsoft Azure, Alibaba, and Google Cloud. The regional cloud growth will necessitate more data center services capacity, according to Equinix. Indonesia will soon need to support for increased cloud services. 

“Strategically important”

The new data center will “add a strategically important, high-growth market to Equinix’s extensive network of interconnected data centers across the world,” said Jeremy Deutsch, president of Equinix Asia Pacific. 

“Having a presence in Indonesia allows Equinix to provide digital infrastructure that enables local businesses to tap growth opportunities abroad and support global organizations looking to access the expanding Indonesian digital economy,” Deutsch said. 

Indonesia is southeast Asia’s “largest digital economy in value” and is also expected to become the “second largest public cloud market” in southeast Asia, according to Jonathan Lim, EVP and GM, Equinix data center services.

Growing data center network

Other recent expansions by Equinix include five total data centers in Chile and Peru. Equinix also recently announced plans to invest $86 million in a new data center in Mumbai, India. Equinix has ongoing data center builds in other cities as well, including in Paris and Montreal. 

Equinix’s current data center infrastructure includes 248 centers in 32 countries, with 51 of those data centers residing in the Asia-Pacific region, including South Korea, Hong Kong, and Singapore. 

Growth of data center market

The global data center market is predicted to grow at a compound annual growth rate (CAGR) of 10.5% from 2021 to 2030, according to Allied Market Research. 

The market value was $187.35 billion in 2020 and is expected to increase to $517.17 billion in 2030. 

The health care, government, and financial services industries will particularly drive expansion of the data center market. 

Read about Equinix’s data center portfolio next.