Digital Realty enters Indonesia via new joint venture

Author: Simon Rowley

Digital Realty, a global provider of cloud and carrier-neutral data centre, colocation and interconnection services, and Bersama Digital Infrastructure Asia (BDIA), a Southeast Asian digital infrastructure platform, have announced the formation of Digital Realty Bersama, a 50-50 joint venture to develop and operate data centres across Indonesia.

The joint venture extends PlatformDIGITAL into the dynamic Indonesian market, directly supporting the acceleration and growth of its digital economy, which is driven by the country’s young and digitally savvy population.

Bersama Digital Data Centres (BDDC), BDIA’s Jakarta-based carrier-neutral data centre platform, has been contributed to the joint venture and will now operate as Digital Realty Bersama. BDIA’s major shareholders include Provident Capital Partners, Saratoga Investama Sedaya, a Macquarie Asset Management-led consortium, and Distro Hub.

BDDC has been led by an experienced management team, including CEO Angelo Syailendra and Chairman Setyanto Hantoro, both of whom will continue as leaders of Digital Realty Bersama. Krishna Worotikan, former Country Chief Financial Officer of Microsoft Indonesia, has joined as Chief Financial Officer.

Digital Realty Bersama owns and operates a connected campus that includes a recently launched, state-of-the-art data centre (CGK11) strategically located in Central Jakarta and another data centre (CGK10) located in West Jakarta. Initially launched with 5 megawatts (MW) of IT load capacity, CGK11 is expected to support up to 32MW through its next phase of expansion.

CGK11 offers customers a robust connectivity hub in the central business district, with direct access to a wide array of networks and services throughout Indonesia. It will also have a direct connection to Association of Indonesian Internet Service Providers (APJII), Indonesia’s largest internet exchange provider, making it one of the most connected, network-dense data centre sites in downtown Jakarta.

Connectivity will be further supplemented by ServiceFabric, Digital Realty’s service orchestration platform, enabling customers to centrally manage complex workflows and orchestrate their hybrid IT infrastructure and AI workloads. According to Structure Research, the Jakarta colocation market alone will generate $499m (£384m) in 2025, with a five-year CAGR of 11% and an expected uptake of approximately 54.6MW.

“Digital Realty is committed to powering the growth of Indonesia’s digital economy by providing businesses with the critical foundation they need to succeed in the digital age and to leverage emerging technology like AI,” says Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty. “This joint venture combines Digital Realty’s global data centre expertise and scale with BDDC’s local market knowledge and robust connectivity, creating a unique value proposition for our customers. We are excited to collaborate with our partners to deliver unparalleled value to this dynamic market and to introduce PlatformDIGITAL to Indonesia, empowering our customers to achieve their digital ambitions.”

Angelo Syailendra, CEO of Digital Realty Bersama, adds, “We are honoured to collaborate with Digital Realty, a global leader in data centre solutions, to deliver the essential infrastructure that will catalyse Indonesia’s digital economy. Digital Realty Bersama will provide swift, cutting-edge, and well-connected data centre capacity in central Jakarta, designed to support the market’s next wave of growth, driven by high-performance computing and AI-powered advancements.”

Setyanto Hantoro, Chairman of Digital Realty Bersama, comments, “The launch of Digital Realty Bersama marks an exciting next chapter in Indonesia’s digital evolution. We look forward to a close partnership between Digital Realty and BDIA to build the vital infrastructure underpinning Indonesia’s burgeoning digital economy.”

Verena Lim, Co-Head of Asia-Pacific Macquarie Asset Management Infrastructure and Asia CEO of Macquarie Group, remarks, “We consider the Southeast Asia digital infrastructure sector to be very attractive given the exponential growth of data consumption and significant capital requirements for infrastructure to keep pace with demand. We are very pleased to partner with Digital Realty on Digital Realty Bersama and believe their market-leading global sector expertise will complement Bersama’s strong on-the-ground presence and local relationships. We look forward to supporting Digital Realty Bersama in its next phase of growth in developing the digital economy of Indonesia”.

Digital Realty contributed approximately $100m (£77m) upon closing for a 50% interest in the data centres and adjacent land, which will support further expansion. In addition to its equity interest, Digital Realty will receive property management and development fees from the joint venture.