Unpacking Indosat Ooredoo’s Data Center Sale to BDx Indonesia

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Indosat Ooredoo Hutchison (IOH) has revealed plans to offload its data centres and edge sites to BDx Indonesia, a leading data centre enterprise, in a deal worth IDR 2.6 billion ($170 million). Formed in May 2022, the joint venture between IOH, BDx Data Centers (BDx), and Lintasarta, an IT solutions firm amplified BDx’s presence in the Indonesian market.

Ironically, BDx already commands authority in running data centres in Hong Kong, Singapore, and mainland China. Now, with the acquisition of the IOH sites positioned around Indonesian cities like Jakarta, Surabaya, and Semarang, among others, the company is poised to further strengthen its global intent. It is worth noting that these strategically placed sites are connected to six domestic and five international subsea cables.

Vikram Sinha, President Director and Chief Executive Officer of IOH, expressed optimism about the collaboration, stating in a press release: “Collaborating with BDx Indonesia not only enhances our customer service but also reinforces our commitment to connecting and empowering every Indonesian. Crucially, aligning our strategic goals will enable Indosat and BDx Indonesia to elevate the nation’s technological landscape.”

The aftermath of this transaction will put BDx Indonesia in a powerful position, boasting a whopping capacity of over 150MW. Not just this, plans are also afoot for a 15MW facility being constructed near Jakarta, with an estimated completion date by the end of 2024. The upcoming site, stationed at Suryacipta, East Jakarta, is planned to be a 100MW hyperscale campus.

The development plans also promise the creation of carrier-neutral edge sites throughout the main islands of Indonesia, all adhering to environmentally friendly design specifications. In a press release, Mayank Srivastava, BDx’s CEO, said: “We are the foremost carrier-neutral data centre provider in the country and, with the expanded portfolio, are set to emerge as Indonesia’s preferred partner for digitalisation.”

The funding for this substantial transaction is being provided by three Indonesian banks: BCA, Bank Permata, and Bank Bukopin. This is yet another example of the continued growth and investment in the telecommunications and IT sectors in the region.

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