Heads up: If you’re expanding into Southeast Asia, Equinix will have space for your colo-ready workloads.
Equinix’s $74 million investment in data center operations in Indonesia points to a larger trend among hyperscalers to leverage the proximity to major economies in the region and the relative geopolitical peace of the country. The digital infrastructure firm says it’s aligning with the Indonesian government’s Digital Roadmap 2021 – 2024, which details the country’s digital transformation plans.
The firm’s strategic advantage in making this move doesn’t lie in its core service of colocation or the hoteling experience of data center equipment, space, and bandwidth, said Gartner senior principal analyst Adrian Wong.
“We have seen a market shift in recent years with developments including software-defined interconnection and data center infrastructure management, the broadening of colocation ecosystems via marketplaces, and, in some cases, bare-metal as a service offerings,” Wong said.
Of note, Equinix boasts all the services Wong cited, and it appears this expanding array of services is influencing the firm’s expansion in the Southeast Asian region.
Colo Providers Follow Hyperscalers into Southeast Asian Markets
Equinix follows Alibaba, Amazon, China Telcom, Google, Microsoft, NTT, and Tencent in planting data center flags on the archipelago of Indonesia.
“Where the big boys go, others will follow,” said Omdia senior analyst Alan Howard.
“Singapore is constrained for space, and it’s expensive operating there,” Howard explained. “Indonesia is an alternative and also gives you direct access to the interconnection system in Singapore, which is so critical for the operations in the area.”
The competitive landscape among colo providers setting up shop in Indonesia points only to Digital Realty at the moment, with Equinix’s other competitors such as Coresite, CyrusOne, and QTS having little presence outside U.S. borders, according to Wong.
“Digital Realty is one provider which I anticipate we will see further expansion into Southeast Asia from with their global presence and capabilities rivaling that of Equinix,” Wong noted. “Additional competition is likely to be seen from other Asia-based colocation providers such as NTT and KDDI.”
With the addition of Equinix’s data center in Jakarta, the firm expands its global footprint to 248 data centers in 32 countries worldwide.
According to Equinix, the eight-story data center will house 1,600 cabinets across 5,300 square meters of space. It will be located amid other key internet exchanges in the Central Business District of Jakarta and is scheduled to open in 2024.