Low emission data center in Indonesia has good prospects in Asia Pacific region, where CAGR of electricity demand is the highest for next 4-year period. However, to enter market with a successful business model and development plan, it takes more than just good location.
Data centers are based on specific type of requirements which must be considered from the beginning of the business plan. The requirements include durability, level of security and quality. If this is present, we can expect a growing market of low emission data center in Indonesia.
Investing in Low Emission Data Center in Indonesia
Southeast Asian countries like Indonesia is racing toward mainstream development, promoting the construction of low emission data center and energy saving enterprises. The development prospect of low emission data center industry has good prospect.
Indonesia represents a sizeable market for data center construction and expansion, as the IT and telecom infrastructure are booming in the region, with an increasing Internet penetration rate of 35%.
Currently there are 180 million internet users in Indonesia, which covers almost 70% of the population in Indonesia.
The proximity of the data center to the users (Edge Data Center) is an important factor for business success. Data centers that have low latency can improve the user experience.
The number of data centers in Indonesia is still far less than its neighboring country, Singapore. Based on data from the Association of Indonesian Data Center Providers (IDPRO), there are only 11 data centers providers in Indonesia, spread over 14 regions, running 150 MW.
Meanwhile, in Singapore, there are 60 data centers with a footprint of more than 357MW. At the end of 2021, Singapore issued a moratorium to pause the addition of new data centers.
Singapore’s gas supply 95% comes from Indonesia and in 2023 the Indonesian government will stop gas supply to Singapore meet domestic needs in Indonesia.
Allianz SE, Germany’s largest insurer by revenue, is aiming to stabilize the low-carbon segment of the company’s portfolio with a long term investment in an Indonesian data center operator that is on track to build one of the most energy efficient facilities in Asia.
The latest news that we received, Goldman Sachs will fund a green data center project in Indonesia. It certainly can have a positive impact on the environment in Indonesia.
Indonesia’s low emission data centers are likely to benefit from these initiatives because they are already meeting many of the requirements needed to qualify as an Eco-Smart City.
For example, they have energy efficient cooling systems that allow them to reduce their water use by up to 90%. This makes them more environmentally friendly than traditional data centers which use large amounts of water for cooling purposes.
The price of electricity in Indonesia is very low compared to other Asian countries such as Singapore and Hong Kong where most data centers are located today. Data centers typically consume large quantities of power so this can represent significant savings for companies looking to set up operations in Indonesia.
The Indonesian government has taken a series of steps in recent months to boost the country’s data center industry, including providing tax incentives, establishing a new agency and issuing a new ultramodern national digital infrastructure master plan.
Low Emission Data Center is More Than Just a Buzz Word!
With the decreasing cost of renewable energy resources and increasing demand in the world, low emission data center becomes a new buzzword in international construction field. Advantage of renewable energy resources makes it possible to realize an ideal environment-friendly low emission data center.
Data centers are the main consumers of electricity and natural gas, accounting for a large proportion of energy consumption and carbon emissions worldwide, so their transition to green energy is a significant undertaking.
Sino-America Low emission data centers project has been successfully launched after six years of planning, design and development. It’s not only a new model and example for low emission facilities but also an important breakthrough in low emission data center construction technology.
Here are the facts why low emission data center is not just a buzzword:
- Data Center is the backbone of the activities of the world community.
- The development of data centers will increase the resulting carbon emissions.
- Clean energy sources will continue to decline over time.
- Renewable energy has not been able to meet the needs of the very large data center industry.
- Sustainability has become a priority for world leaders and industry leaders.
With the development of the use of digital technology after the pandemic in Indonesia, this certainly requires additional data center capacity at that location.
The Co-location and Hyperscale market in Indonesia is projected to grow to over 600MW in 2025.
These developments can have serious impacts on the environment. Data centers account for 3% of global carbon emissions. Therefore, low emission data center is not just a buzz word nowadays. This is why IT leaders are prioritizing green data centers by upgrading technology and investing in green data centers.
To sum, the data center industry will continue developing in Indonesia. The existing facilities will continue to renovate and expand, there’ll be new data center facilities built, expansions will take place in existing venues, and more companies will enter this industry.
The country’s data center industry is still in its infancy but has been growing fast over the past few years as businesses look for cheaper alternatives to cloud computing providers such as Amazon Web Services (AWS) and Microsoft Azure.
Data center investment in Indonesia is a good long-term opportunity, with data center demand driven by the growing number of Internet users and the increasing adoption of cloud services.
It’s a good time to enter this scene as an investor because Indonesia needs more data centers. However, it’s worth considering that the success of any industry depends on multiple factors.
In the future, we will continue to explore the intelligent layout design of power grid, improve power efficiency of servers and reduce transmission loss, which would make our creation even more powerful.
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