Tencent Cloud said on Monday that it has established its first internet data center in Indonesia in Jakarta’s central business district. It will allow the firm to be closer to its users, reducing access delays to data and applications, help customers meet regulatory and compliance requirements, and provide more disaster recovery options in the Asia Pacific region, the company said.
The data center will further support Tencent’s business in Indonesia, including music streaming platform Joox and on-demand video WeTv. The firm also has a partnership with Bank Neo Commerce, which uses Tencent’s distributed database (TDSQL). Tencent Cloud also works with Aestron, which powers livestreaming app Bigo, short-video platform Likee, and messaging service Imo.
The data center market in Indonesia is projected to grow at a CAGR (compound annual growth rate) of 11% from 2019 to 2025, according to the Indonesia Data Center Market – Investment Analysis and Growth Opportunities 2020–2025 report, driven by an increasing number of internet and social media users in the country. Meanwhile, the government is upgrading its infrastructure with technologies such as AI and the IoT on roads and traffic signals, which will benefit cloud companies. Last year, the administration further announced a plan to build a “national government data center” that is expected to open by 2023.
The new facility adds to a long list of global companies building digital infrastructure in the country. Alibaba was the first to open a data center in Indonesia in 2018, followed by Google and Amazon Web Services. Microsoft recently announced a plan to build the firm’s first data center region in the country. Earlier this month, Facebook said that it will build two new undersea cables to boost internet capacity in Indonesia and Southeast Asia. The cables aim to support Facebook’s USD 1 billion data center in Singapore that is expected to open next year.