DCII – Plans to build data center in Bintan

Data Center Indonesia aims to establish data center in Bintan, Riau Islands, targeting Singapore’s market. Bintan's location was chosen because its proximity to Singapore and by cost, to be more affordable to Singaporean customers. According to the plan, the data center will use solar panels as the main source with a capacity of 3,000 MW. ing forward, DCII also plans to open several other data centers ex-Java area with self-funding or in collaboration with other partners. The expansion is consistent with Indonesia’s data center needs that expected to be 30-50%. DCII is planning to spend IDR500 bn in capex for 2023 which will be used for the construction of a data center in Cibitung, West Java and build an AI platform for data center management. (Source : Investor Daily) Comment: While Batam is becoming a sweet spot for data center business, the plan of data center expansion in Batam could mark higher competition in the area, as TLKM has also kicked start construction in the area. Aside from the two, other competitors aiming for the area include GDS holdings and DC First. Meanwhile, Singapore market has exceeded 500MW, which signifies burgeoning demand from the market. On the other hand, Batam also offers more affordable electricity, which is determinant in DC cost structure, with one-third of those Singapore and lower than Johor.