Keppel and the Salim Group to operate data centre in Indonesia

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The Salim Group and the Keppel Group, through the Alpha Data Centre Fund (Alpha DC Fund), managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd (Keppel Data Centres), have signed conditional agreements to jointly develop and operate a high-availability data centre in Bogor, about 35km distance from Jakarta, Indonesia.

The data centre, IndoKeppel Data Centre 1 (IKDC 1), will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres. Development of the facility will take place over three phases and will feature a gross floor area of approximately 105,300 sq ft with Tier 3 concurrent maintainability standards for power and cooling. The construction of the data centre’s core and shell as well as first phase fit-out is expected to be completed by the first half of 2020.

Separately, IKDC 1 and its underlying 3ha land plot will be held by a 60:40 joint venture between the Salim Group and the Alpha DC Fund respectively. It is envisioned that the 3ha land plot will be the first phase of a larger 7ha data centre campus development that will cater to growing demand for quality data centre space in Indonesia.

The Salim Group currently owns and operates a data centre in Indonesia serving financial institutions and enterprise customers. Together with the Keppel Group’s established track record in owning, developing and operating high-availability data centres across the Asia Pacific and Europe, the collaboration pools both groups’ expertise for the construction, fit-out and subsequent operation and maintenance of the data centre.

“The Salim Group is one of Indonesia’s biggest conglomerates with many diversified assets ranging from food, banking and telecommunications. For the past decade, the group has been keen on preparing and expanding its Salim Digital Ecosystem to support the nation’s transformation to Industry 4.0. It’s here,” said Sugiharto Darmakusuma, Director of Salim Group.

He added, “We have been actively investing in fibre connectivity for the past decade and now we are, I believe, one of the very few players in Indonesia who have this capability. We have fibre optics cables laid out all across Sumatra, Java all the way to Bali. We also have invested in our own submarine cables from Java to Singapore. We are expanding our data centres to achieve a global presence and we believe that Keppel Data Centres is the right partner to achieve that.

“With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres’ presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution.”

Indonesia’s data centre services market is one of the fastest growing in the region with a CAGR (compound annual growth rate) of 35%. Positive growth drivers such as data onshoring regulations, increased smartphone adoption and the growing popularity of e-commerce are expected to generate healthy demand for quality data centres with high resiliency.

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