Digital Edge moves into Indonesia with $165m acquisition
Singapore's Digital Edge has moved into the Indonesian data centre market by acquiring a controlling interest in Indonet for $165 million.
The combination of Indonesia's rapidly growing digital economy, accelerating enterprise cloud adoption and the proliferation of startup companies is driving demand for colocation services and new data centres in the country.
With the recent opening-up of the foreign ownership restrictions in the Indonesian telecoms industry, Indonet is well positioned to become the “service provider of choice” for foreign telcos looking to expand their regional and global footprints into Indonesia, said Digital Edge.
Indonet is a carrier that owns self-built fibre assets in the Jakarta (pictured) metro area and offers a full suite of connectivity, local loop, cloud access and co-location services. It also recently commissioned its EDGE1 data centre - with 1,500 cabinets - at Jalan Kuningan Barat, Jakarta.
Samuel Lee, chief executive officer of Digital Edge, said: “This strategic partnership marks our initial entry into South East Asia. It enables us to meet the pressing needs of new customers wanting to deploy into Indonesia, and also to offer local firms a strong regional platform to expand outside of the country.”
Toto Sugiri, founder and chairman of Indonet, added: “Indonet is now best placed to capitalise on the market growth of Indonesia, given Digital Edge's unique combination of technical knowledge on data centre design, relationship with regional and global customers and access to capital. We are already looking at the next round of expansion projects.”
Backed by Stonepeak Infrastructure Partners, Digital Edge says it has in excess of $1 billion in committed capital to expand its business in Asia. It has recently acquired data centres in both Japan and South Korea.