PT Telkom Indonesia (IDX: TLKM), opened a new data center in Ulin, Banjarmasin, South Kalimantan - Photo by the Company

JAKARTA (TheInsiderStories) – Tencent Cloud International, the cloud business from China, launched the first internet data center (IDC) in the capital city of Indonesia, growing infrastructure network spanning across 27 regions and 61 availability zones. While, telco operator, PT Telkom Indonesia Tbk (IDX: TLKM), opened a new data center in Ulin, Banjarmasin, South Kalimantan.

The state-owned firm has inaugurated the Neutral Cloud & Internet Exchange (neuCentrIX) data center last week, a second data center in the Kalimantan region. The facility has a capacity of 29 racks, and the company hopes to accommodate government, internet service providers, and startup customers.

According to director of Telkom, Dian Rachmawan, his company has built 18 neuCentrIX facilities in 13 cities across Indonesia. While, Tencent Cloud has beefed up its global push over recent years amid rising overseas demand and fierce competition domestically.

The unit of Tencent Holdings, said the data center is intended to strengthen the company’ commitment to meet the growing business needs in Indonesia and Asia. According to Poshu Yeung, SVP of Tencent Cloud, said Indonesia is one of the fastest growing public cloud markets in Asia Pacific with a CAGR of 25 percent and market size growth is expected to increase to US$800 million by 2023.

“With a larger population of young people, Indonesia has a large internet demographic dividend with a fast growing mobile internet market. We are very pleased to be able to launch our first IDC in Indonesia to help maximize the optimal potential of cloud computing in this country,” he noted.

Beside Tencent, other global company such as Microsoft Corp., (NASDAQ: MSFT) and Amazon Web Services is also building a data center in West Java which is targeted to be completed this year. Google LLC also launched the Google Cloud Platform region in Jakarta in June 2020 with  hope that Indonesia can become a data center hub in Asia.

Other Chinese firm, Alibaba Cloud also has built two data centers in Indonesia and creating a third database that is targeted to operate in 2021. While, on April 7, Singapore-based Blazeclan, has announced will work with Apptio, a provider of technology business management solutions to help enterprises analyse, optimise, and plan their technology spend in Asia Pacific region.

“Today, cloud adoption is at an inflection point in the region, and enterprises are increasing their spending on public cloud platforms which makes it a perfect time for our partnership with Apptio,” says Varoon Rajani, CEO, Blazeclan last week

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