Singaporean data center startup Digital Edge buys Indonesian firm for $165m

Digital Edge Holdings, a Singapore-based data center provider, announced it has acquired a controlling interest in Indonesian infrastructure service provider Indonet via its Hong Kong subsidiary Digital Edge. The company became the single largest shareholder in Indonet after it had invested US$165 million.

Toto Sugiri, founder and president commissioner of Indonet, sold more than 90 million or 57% of his shares in the transaction for a total value of 946.88 billion rupiah (around US$66.5 million).

EDGE1 data center / Photo credit: Digital Edge

Founded in 1994, Indonet is the first commercial internet service provider in Indonesia. It offers multi-connectivity solutions, a data center, and cloud services to various corporate clients. The company recently commissioned the Edge1 data center with 1,500 cabs – which are racks or cabinets for the servers – at Jalan Kuningan Barat, the most carrier-dense area in Jakarta.

Digital Edge, which was founded in 2020, is a data center company backed by US-based infrastructure and real assets-focused private equity firm Stonepeak Infrastructure Partners. It has more than US$1 billion in committed capital for establishing a data center platform in Asia, and its acquisition of Indonet marks its first entry into Southeast Asia.

The Singapore-based company already has several data centers in Japan and South Korea.

According to Structure Research, Jakarta’s data center market is expected to reach US$625 million by 2025. The combination of the country’s rapidly growing digital economy, the accelerating cloud adoption of enterprises, and the emergence of more startup companies are driving the demand for this space.