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China’s Tencent Cloud launches first data center in Indonesia
With its first data center in Indonesia, the company hopes to tap into the country’s growing cloud computing market, which is projected to be worth US$ 800 million by 2023.
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hinese cloud service provider Tencent Cloud launched an internet data center (IDC) in Jakarta on Monday, the company’s first in Indonesia, seeking to capture a slice of the country’s rapidly growing cloud computing market.
The IDC will allow Tencent Cloud, a subsidiary of Tencent Holdings Ltd, one of China’s biggest technology firms, to be closer to Indonesian users, enabling faster data transfers and accelerating various industries’ digital transformations.
“Indonesia has a large internet demographic dividend with a fast-growing mobile internet market. We are very pleased to launch our first IDC here to help maximize the cloud computing potential in this country,” said Tencent Cloud International senior vice president Poshu Yeung.
Indonesia is one of Asia Pacific's fastest growing cloud computing markets, with a projected 25 percent compound annual growth rate (CAGR) from US$200 million in 2018 to a projected $800 million in 2023, according to a Boston Consulting Group report.
Tencent adds to a list of tech behemoths, such as Alibaba, Microsoft and Amazon, whose cloud computing arms are racing to capture a piece of Southeast Asia’s largest digital economy.
Alibaba Cloud plans to open a third data center in Indonesia this year, Microsoft Azure has announced plans to establish its first data center but at an unspecified time and Amazon Web Services (AWS) recently launched its first edge location in Jakarta with plans for an infrastructure “region” in Jakarta by 2022 at the latest.
Read also: Amazon Web Services launches first Indonesia cloud edge location
Tencent Cloud’s Indonesian IDC marks its 61st availability zone, which span over 27 regions. In Southeast Asia, Tencent Cloud also has availability zones in Bangkok, Thailand and Singapore.
Tencent Cloud’s clients include Indonesia’s Bank Neo Commerce and Hong Kong-based music streaming service JOOX.
Tencent announced last year that it would open a new office in Singapore to serve as its regional hub for Southeast Asia as the region had proven to be an important market for the company.
Read also: China's Tencent to open Southeast Asia regional hub in Singapore
Indonesia’s cloud computing demand is being driven by its growing digital economy, which is expected to be worth $124 billion by 2025. If this occurs, the country will account for nearly half of Southeast Asia’s digital economy that year, according to the 2020 e-Conomy SEA report by Google, Temasek and Bain & Company.
