GIC, Singapore’s sovereign wealth fund, and Polymer Connected, an eminent data centre provider, have established a partnership to develop a data centre campus in Jakarta.
With this partnership, Polymer Connected has acquired the land to build the campus, strategically located in Jakarta Barat. This will be Polymer Connected’s first campus in Indonesia and will include 2.6MW Tier III and 26MW Tier IV data centre facilities. It will adopt a hyperscale model, to be leased on a large, long-term basis to wholesale clients. Built to international design standards, the Jakarta Barat campus will be scalable, reliable and secure, and will be the first green Indonesian data centre to utilise Jakarta’s natural gas network to produce electricity.
Polymer Connected dedicated to building hyperscale data network in Jakarta
Darren Hawkins, CEO, Polymer Connected stated that, “With a population of 575 million, 350 million internet users and 390 million active mobile users, Southeast Asia’s digital economy is forecasted to triple to USD240bn by 2025. Data centres represent the backbone of this movement, which is why Polymer Connected chose to build its hyperscale data network here. Our aim is to provide businesses with state-of-the-art data solutions and to help our clients unlock their growth potential in these fast-emerging digital markets.”
Jakarta data centre market a nascent one
GIC’s partnership with Polymer Connected comes after a recent report said that “Jakarta’s colocation data centre market is at a nascent stage.” The report by CBRE titled ‘Asia Pacific Data Centre Trends Q1’, said the lack of rich fibre infrastructure outside the Golden Triangle and vibrant domestic outsourcing market has made it relatively challenging for overseas data centre colocation operators looking to enter or expand.
“Take-up & Demand
The market has seen take up of 6-8MW over the past 18 months. The majority of take-up has been contributed by international hyperscale cloud providers as well as the finance industry, which is legally required to keep its core data within the country.
Overall vacancy (shell and fitted) stood at 29% in Q1 2019 as operators without a strong track record in working with multinationals are finding it difficult to attract tenants. The pipeline suggests that existing supply capacity will double over the next three years, predominantly driven by the availability of suitable sites and newer entrants.
Indonesia remains one of the more expensive markets in Asia Pacific due to the relative lack of competition. However, the entry of new operators is expected to put downward pressure on pricing in the medium to long term.”
The CBRE report noted that Power supply in Jakarta is subject to reliability issues, meaning that some operators have had to locate private sources of supply or resort to building their own on-site power plant; and that the lack of data centre professionals is also hindering market development.
The region’s data centre market however, continues to expand, said the report. Colocation supply across the ten Asia Pacific markets covered by CBRE Data Centre Solutions Services totalled of 1,772 MegaWatts (MW) in Q1 2019.
Demand is predominantly coming from large technology and global cloud corporates from the U.S. and China, ensuring fitted capacity remains tight across the region, said the report.
“The pipeline is totaled for about 800 MW which will help to ease the tight availability over the past few years. Nonetheless, Singapore, the largest data centre market in this region, will remain as a tenants’ market with the ample supply.”
CBRE said that large-sized technology and cloud companies have been the major demand drivers, displaying large and unprecedented requirements and accounting for a significant amount of colocation space in the last 18 months. A colocation data centre is a standalone building in which multiple companies share space for storing and running their IT equipment, akin to a multi-tenant office building or apartment complex.
A Hyperscale Colocation typically denotes large power requirements (>500 kilowatts, kW) but end-user is specifically a cloud or large tech company with requirements for scalable power, storage, and cooling; whereas wholesale colocation typically denotes large power requirements (>500 kilowatts, kW).
CBRE said in its report that it only tracks carrier neutral colocation markets which excludes non-carrier neutral facilities, system integrators and self owned facilities (including the hyperscale cloud).
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