Chinese tech behemoth Alibaba plans to open its third cloud data center in Indonesia by next year in expanding its presence in the Indonesian market amid rising competition.
Alibaba Cloud, a subsidiary of Alibaba, said Tuesday the latest data center would minimize data loss-related risks by dividing workloads between the company’s three centers in Indonesia. The first center was built in 2018 and the second in 2019.
“This is very important as many businesses – including traditional enterprises such as banks – are shifting their IT infrastructure to the cloud amid the pandemic,” wrote Alibaba Cloud in a statement.
The cloud provider neither disclosed the centers’ investment value nor their general location.
Indonesia’s major cities, starting with Jakarta, formally entered a partial lockdown in late April, causing an uptick in demand for digital services including e-commerce, finance, online media, education and video games. All these services are lucrative markets for Alibaba.
However, rival tech giants Google and Amazon also plan to expand their cloud service subsidiaries in Indonesia, which is the single largest digital economy in Southeast Asia.
Google Cloud opened a new Jakarta region in late June, bringing its services closer to local customers, while Amazon Web Services plans to build a data center in 2022.
Alibaba Cloud country manager Leon Chen said his company would also build a data scrubbing center alongside the third data center in Indonesia.
Scrubbing would improve system reliability as cybersecurity attacks “have grown in intensity and technology with many businesses moving their IT infrastructure to the cloud,” he said.
Communications and Information Minister Johnny G. Plate, in the statement, reminded Alibaba Cloud to comply with Indonesian policy and regulations over data management.
“We hope data management processes will be carried out in accordance with the Indonesian government’s principles on data management, which are principles of legal validity, compliance and transparency,” he said.