Capital Market Players Are Convinced That Data Center Business Will Expand: There Is Strong Demand From Market

Illustration. (Photo: Doc. Antara)

JAKARTA - Capital Market Player Michael Jayadi said the development of the data center industry in Indonesia will continue to thrive in the future. He made the assumption based on market developments, which required sufficient data for business development purposes.

"The entry of big players such as the Salim Group and Telkom to be involved in the data industry is the reason that this sector has a high enough potential to develop, considering these names have proven to be able to build businesses well," he said in a virtual discussion broadcast by Smart FM, Saturday, June 12.

Michael added that it is impossible for the two big names of corporations in Indonesia to develop their line of business without seeing great potential.

"There must be a strong demand from the market so they are willing to invest large funds to enter this sector," he said.

Furthermore, Michael revealed that data capitalization is quite useful for determining strategic decisions in the future.

"Through processing this data, we can predict or even guess the market direction that will occur," he said.

The capital market practitioner reminded that the development of the data flashlight industry must be accompanied by data protection capabilities.

“Don't forget that the security aspect is important to implement if this industry wants to grow. Besides being able to increase the element of public trust, the data security factor can also be a reason for investors to come to invest in this industry,” he explained.

For information, the State-Owned Enterprises (BUMN) PT Telkom Indonesia Tbk is known to have built the largest capacity data center in Indonesia as well as a global standard called HyperScale Data Center (HDC).

Telkom HDC is built on an area of 65,000 square meters with a capacity of up to 10,000 racks, and an electrical power of around 75 MW. This facility is claimed to be a data center that in its operation produces minimal emissions of carbon dioxide gas.

Meanwhile, Salim Group and Keppel Group through the Alpha Data Center Fund (Alpha DC Fund) have just reached an agreement to establish a joint venture (JV), IndoKeppel Data Center 1 (IKDC 1) which will take place in Bogor, West Java, an area of 3 hectares.