Batam (gokepri) – Telkom Indonesia’s NeutraDC Nxera Batam data center is poised to capitalize on Singapore’s burgeoning demand for data storage, especially for companies developing artificial intelligence.
As Singapore imposed restrictions on new data center developments in 2018 due to land and energy constraints, the city-state has experienced a data storage crunch. This has prompted tech giants to seek alternative locations in Southeast Asia.
Batam, with its proximity to Singapore, has emerged as a prime destination. Telkom has strategically positioned NeutraDC Nxera Batam to cater to this demand, offering state-of-the-art infrastructure.
“Batam is our primary target,” said Andreuw Thonilus Albert, CEO of NeutraDC, July 16.
Singapore’s data center market is indeed lucrative. Statista forecasts a CAGR of 6.82% from 2024 to 2028, with the market value expected to reach US$1.38 billion in 2028.
Slated to be operational in the third quarter of 2025, NeutraDC Nxera Batam, a joint venture between Singtel, Telkom Indonesia, and Medco, boasts a capacity of 51 megawatts IT load. The facility, located in Batam’s Kabil Industrial Estate, has received a significant investment of Rp1.4 trillion.
Indrama YM Purba, CEO of NeutraDC Nxera Batam, emphasized the growing need for data centers driven by the digital economy. With Indonesia’s substantial internet penetration and a thriving startup ecosystem, the demand for data storage is soaring.
“Telkom recognized the need to invest in data centers to capture this opportunity,” Purba said.
Honesty Baasyir, Director of Group of Business Development at Telkom Indonesia, highlighted the company’s strategic advantage in the data center business. “We have all the necessary resources to excel in this sector,” he said.
NeutraDC Nxera Batam is one of Telkom’s largest data centers, complementing its facilities in Cikarang and Singapore. By strategically locating data centers in key regions, Telkom aims to cater to the diverse needs of its customers and capture a significant share of the growing Southeast Asian data center market.
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