Outsourced data center providers have been expanding their capacity on calculations that Indonesia would see an exponential rise in data volume as more of both enterprises and people access the Internet for services.
CommScope Asia Pacific technical director James Young says the widespread adoption of mobile Internet has catalyzed the exponential growth in data.
CommScope is a provider of telecommunications equipment and solutions, such as fiber optic cables needed to connect data centers.
“Indonesia has more than 200 million mobile phone users and although they are not all on the Internet, the numbers are growing quickly,” Young said recently.
And as enterprises in Indonesia extend their services over the Internet, such as banks with their mobile transactions, they begin to feel the need to scale up their information and communication technology (ICT) systems, including data storage, to cope with the heavier data stream, he added. “Data centers have become strategic assets.”
Experts say enterprises have begun to outsource their data centers, instead of only relying solely on internal or captive ones to obtain more data storage space.
International Data Corporation (IDC) Indonesia head of operations, Sudev Bangah, said enterprises turned to outsourced data centers because theirs had aged. Fifty four percent of firms surveyed, he said, felt that their current data center would become obsolete within the next 18-24 months.
“Therein lies the opportunity for outsourced data centers as considerations to outsource will increase over the next two years,” Bangah noted. “[...] One-fifth of firms with captive data centers are also considering fully outsourcing within that period once their infrastructure ages.”
IDC data also shows that the information technology (IT) services market would be worth US$1 billion by 2013, with an annual growth rate of roughly 20 percent.
One of the latest companies to tap into the business opportunity is PT Data Center Infrastructure Indonesia (DCI). In partnership with US-based data center platform Equinix Inc, the company inaugurated a new data center in May.
The company plans to build up to eight data centers, or modules, at their estate in Cibitung industrial complex. Each module would measure around 6,000 square meters and house approximately 1,250 racks of servers.
DCI president director Marina Budiman said the company would construct another module once the previous one reached full capacity. “The speed at which we build new modules will depend on the take up rate.”
She declined to mention investment size but noted that the company would break-even on each module within six years.
The construction of new data centers has prompted older players to expand theirs as well.
PT Multipolar Indonesia (MLPL) director for consulting and enterprise delivery Halim D. Mangunjudo said the company was
investing $100 million to expand their capacity. The publicly listed company, part of the Lippo Group conglomerate, plans to build another data center measuring 12,000 square meters, or 14 times the size of their current data center, in Cikarang, West Java.
“We want to guard our market share and competitive edge through fresh investments,” he said recently, adding the firm’s main clients were financial service institutions, especially banks, telecommunications operators and government agencies.
He also said the 2012 Information and Electronic Transaction Law bolstered the data center business by requiring enterprises that handled electronic transactions to establish data centers and data recovery centers in the country.
PT Indosat director and chief of wholesale and infrastructure, Fadzri Sentosa, said the small and medium enterprise (SME) segment was an equally lucrative market for its data center and data recovery center facilities that it ran in two separate locations in Jakarta. “There are roughly 5 million SMEs present, and that shows the potential of the segment.”