Indonesian conglomerate Salim Group has signed a joint venture agreement with Singapore’s Keppel Group, through its Keppel Data Centres Holding Pte Ltd, to develop and operate a high-availability data centre in Bogor, about 35 km from Jakarta.
The new data center, IndoKeppel Data Centre 1 (IKDC 1), will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres, according to a joint release.
Development of the facility will take place over three phases and will feature a gross floor area of approximately 105,300 sq ft with Tier 3 concurrent maintainability standards for power and cooling. The construction of the data centre’s core and shell as well as first phase fit-out is expected to be completed by the first half of 2020.
Separately, the data center and its underlying 3ha land plot will respectively be held by a 60:40 joint venture between the Salim Group and the Alpha DC Fund, managed by another of Keppel’s business unit, Alpha Investment Partners Limited (Alpha).
The land plot will be the first phase of a larger 7ha data centre campus development that will cater to the growing demand for quality data centre space in Indonesia.
The Salim Group, which boasts assets ranging from food, banking and telecom, owns and operates a data centre in Indonesia serving financial institutions and enterprise customers, while Keppel Group has developed a track record in owning, developing and operating high-availability data centres across the Asia Pacific and Europe.
The collaboration between the two companies will pool both groups’ expertise for the construction, fit-out and subsequent operation and maintenance of the data centre.
“We have been actively investing in fibre connectivity for the past decade and now, we are, I believe, one of the very few players in Indonesia who have this capability,” said Salim Group director Sugiharto Darmakusuma. “”With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres’ presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution.”
The data center services market is rapidly growing in Indonesia, driven by data onshoring regulations and increased smartphone adoption. For Salim Group, the development of a data center would also serve as a strategic move to support its lines of digital businesses, particularly e-commerce.
Last year, Salim announced an e-commerce JV with Korea’s Lotte group, iLotte, with an investment of $100 million. Prior to that, the group took over e-commerce site Elevenia from SK Planet, who decided to make an exit from Indonesia after a four-year-long venture with XL Axiata, one of Indonesia’s largest telco firms.
More recently, Salim Group announced an undisclosed amount of investment in mobile financial services company Youtap, claiming a minority stake in the Singapore-headquartered company.