BDx to enter Indonesian market with US$300 million investment

BDx to enter Indonesian market with US$300 million investment

To set up joint venture.

By on

In what will be one of the largest data centre investments in Indonesia, Big Data Exchange (BDx) has entered agreements with local operators, Indosat Ooredoo Hutchison (PT Indosat Tbk or IOH), PT Aplikanusa Lintasarta (Lintasarta) and PT Starone Mitra Telekomunikasi (SMT), with a collective value of US$300 million.

The agreements include a conditional sale and purchase agreement of shares (CPSA) and a joint venture agreement, together with a series of commercial and operational agreements, with the three companies.

This marks the entry of Hong Kong-based BDx into the Indonesian market.

The company is owned by global infrastructure private equity group I Squared Capital.

According to Mordor Intelligence, the Indonesian data centre market, which was worth US$1.67 billion in 2021, is expected to grow to US$3.43 billion by 2027, with a compound annual growth rate (CAGR) of more than 13 percent.

Mordor said the growth would be driven by the country’s rapidly evolving internet economy.

IOH is a telecommunications provider which is owned by Ooredoo Hutchison Asia, a joint venture between Qatar-based Ooredoo and Hutchison Asia Telecom Group.

Lintasarta provides telecommunication services, primarily data communication and internet services and SMT is also a telecommunications company based out of Central Java.

BDx CEO, Braham Singh, said his company will collaborate with IOH and Lintasarta to establish a new “trailblazing” data centre and “cloud-focused operation in Indonesia”.

The joint venture is being formed to meet Indonesia’s growing need for a “higher level” of global data centre facilities, Singh said.

“[The agreements) will deliver a comprehensive portfolio of the most advanced innovative solutions to enable digital transformation. This marquee company will focus on multiple industries, including financial services, hyperscalers, telecom operators and government organisations,” Singh said.

Singh said the deal added a key Asia Pacific market to BDx’s “expanding data centre portfolio”.

“Indonesia’s rapidly growing and sustained demand for connectivity and cloud services continues to drive the need for data centre solutions, providing the next strategic step in BDx’s footprint”, Singh said.

He added that customers in Indonesia would soon gain access to BDx’s existing carrier-neutral network that spans Hong Kong, mainland China and Singapore, as well as its data centre infrastructure and maintenance tools.

“BDx customers and hyperscalers in other markets will also be able to connect to the company’s new Indonesia data centre and infrastructure seamlessly,” Singh said.

The joint venture is subject to approvals and completion of the CSPA.

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