Equinix, Astra to build $75m green data center in Jakarta

Equinix, a global digital infrastructure company, has announced plans to construct its first data center in Jakarta, Indonesia.

The facility, named JK1 Data Center, is being developed in partnership with PT Astra International, with a total investment of 1.2 trillion rupiah (US$75 million).

The initial phase of the project will involve a capital expenditure of 628 billion rupiah (US$38 million), according to Haris Izmee, President Director of Equinix Indonesia.

Located in central Jakarta, the facility will focus on sustainability by using technologies such as Cooling Array and liquid cooling for managing heat from high-performance computing workloads, including artificial intelligence.

Izmee said that the JK1 Data Center will operate entirely on renewable energy through the purchase of renewable energy certificates (RECs).

🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia’s emerging status in APAC’s data center expansion

Equinix’s $74 million investment in Jakarta represents a strategic entry into one of Asia’s fastest-growing digital markets.

This move aligns with broader industry projections showing Indonesia’s data center capacity is expected to more than double from 430 MW to 936 MW by 2028, marking a 210% increase1.

The timing is significant as the Asia-Pacific data center market is forecast to grow from $26.95 billion in 2024 to $79.05 billion by 2033, at a compound annual growth rate of 12.70%2.

Equinix joins other major tech companies making substantial investments in Indonesia’s digital infrastructure, including Microsoft’s planned $1.7 billion investment in cloud and AI infrastructure and Tencent Cloud’s $500 million commitment3.

These investments reflect confidence in Indonesia’s digital economy, which is projected to exceed $130 billion by 2025, driven largely by its young, tech-savvy population3.

2️⃣ Data sovereignty driving localization of digital infrastructure

Equinix’s decision to build in Jakarta’s city center reflects the growing importance of data localization in response to regulatory requirements.

Indonesia’s regulations requiring financial data to be stored domestically have significantly increased demand for local data centers, forcing global companies to establish infrastructure within national borders rather than relying on offshore hubs4.