BDX Data Centers CEO, Mayank Srivastava, talks about how Indonesia's ample energy supply and digital economy makes it a prime location for data center deployment.

Jakarta

Indonesia is attracting significant investment in data center infrastructure, with $320 million being allocated to new facilities. The country is becoming an increasingly important location for data centers due to its surplus power and a large population of digital natives, shifting some focus away from traditional hubs like Malaysia.

Industry representatives note that Indonesia's data center ecosystem includes advanced technologies and comprehensive infrastructure, such as cable landing stations. However, ongoing regional energy disruptions and rising prices are impacting margins, underscoring the importance of energy security for continued growth.

Why Indonesia is a prime location for data center deployment

The first of first and foremost $320 million. And it seems that a lot of this is getting directed towards your facilities in Indonesia. It's not a country we think we talk about a lot when it comes to data centers. Do you think that's changing and we're starting to see the shift from Malaysia towards countries like Indonesia now happening. Yeah. And so thank you for having me. And the way to think about how countries come up in in data center deployment and take a step back. One of the key constraints for AI is power. And there are but a few countries in the region which have surplus power. Indonesia is one of them. So yes we do. We do see a lot of a lot of demand coming into the country. And coupled with the fact that it is it's a young population digital natives. The uptake is very good as well. I see how many. Talk to us about your footprint right now in Indonesia and if that's going to expand based on the fact that you've got more firepower to deploy now. So Indonesia we have. It's it's it's a massive mix. We have two facilities which are ready with about one point two gigawatts of power. We have a few facilities which are already functioning. What that means is they are humming. And in some of these facilities we've deployed the latest technology liquid cool reactor etc. And then we have insights around the country. And then we have cable landing stations. So we've gotten the entire value chain of of the Internet as well as a mapped out soup to nuts. Because energy is so important to data centers. How are you viewing the current state of global energy at the moment and the fact that there's a lot of questions about energy security especially in some of the countries in Southeast Asia that are operating in. So excellent question. Of course yes there are. There are disruptions across the region as you're aware. Do I have a magic wand to solve for it. I wish I don't. So we'll probably just live through it. Hope that hope that things settle down sooner than later and life gets back to normal. Impact on margins because of energy prices. Are you seeing any impact. So the way the industry operates is that. Across the value chain of any digital service so to speak energy is a key component across the value chain. There would definitely be a compression of margins.

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