JABABEKA – PT Harrisma Data Citta (“HDC”) has started the development of a Hyperscale Data Center, marked by Ground Breaking ceremony on Monday, 28th June 2021. The project has obtained Senior Term Loan facility from PT Indonesia Infrastructure Finance (“IIF”) which has been signed and effective at the end of May 2021. Nuevo Asia Capital Pte Ltd (“NAC”) acts as the sole Mandated Arranger in this transaction.
The Hyperscale Data Center Project is a premium Data Center facilities project to be constructed by PT Pembangunan Perumahan (Persero), Tbk (“PTPP”) as the main contractor on a site of 17,289 square meters located in Jl. Science Boulevard Raya A1B, Jababeka Industrial Estate, Bekasi. The design & concept of the building pursued the Zero Downtime Facility Design, Efficient Data Center with PUE < 1.5, and Green Building concept, along with the current demand trend for the efficiency and green of Data Center to create more value to the overall performance.
The project development alone will be consisting of 3 phases with a total of rack capacity up to 3,000 racks and Tier III specification (certification) facilities.
Phase 1 – comprises the construction of a “powered-shell” building (Data Center Building) with a total gross area of 20,057 square meters in a 3-storey structure. The fit-out capacity is 3.5MW of IT Computer room on Level 1 of the DC Building and supporting MEP facilities.
Phase 2 – The fit-out of 7 MW of IT Computer room on Level 2 of the Data Center Building.
Phase 3 – The fit-out of 7 MW of IT Computer room on Level 3 of the Data Center Building.
HDC has appointed IIF and NAC as Joint Mandated Lead Arrangers to arrange the financing for the further development of phase two and phase three of the Project in Q4 2021.
“With our experience in financing sustainable infrastructure in Indonesia, together with NAC, we have succeeded in providing the financing for the first phase of this project. Supported by attractive growth potential, we are confident that we could support HDC to arrange the financing with the best terms for phase two and phase three. In this first phase, IIF provides facilities with a total of IDR 629.8 billion with the target completion of the project by 2022,” explained Mr. Reynaldi Hermansjah, President Director of IIF.
Mr. Reynaldi added, “Currently, infrastructure development is not only seen from physical development such as roads and construction but also digital development. Therefore, IIF always consistent in developing and adapting to the times. We are very proud of this achievement and ready to take part too in the construction of the next phase of the project.”
Yulianni Liyuwardi, Country Director of Nuevo Asia Capital Pte Ltd in her opening speech explained that the Telco Data Center sector in Indonesia is very promising due to several reasons:
- Indonesia is one of the largest numbers of internet users in the world, thus it is certain that its data storage needs also follow this number, and it would make sense for data storage to be set up close to the existing contain users.
- Relatively more attractive investment ratio compared to several countries in Asia such as Singapore and Japan, so in general it will make rental prices and margins more attractive.
- The Telco data center sector in Indonesia is one of the few existing sectors, which is proven to experience positive growth during this Pandemic period. One of them is due to changes in market behavior that tended to increase in online or virtual action during this Pandemic period.
“It is predicted this market behavior will continue; thus, the availability of Data Center facilities is very important to be able to accommodate the increasing demand for virtual data. The role of financial institutions and investors is here to play an active role in supporting the growth of the Telco Data Center sector. The same thing will be needed by HDC Group in its future developments, where they have committed to becoming one of the leading players in both the retail and wholesale segment. The required investment for phases 2 and 3 is around USD 100 million, excluding its investment needs in the retail segment,” Yulianni added.
Mr. Sukoco Halim President Director of HDC explained: “The development of the Hyperscale Data Center Project is HDC’s response to the huge growth potential of the Data Center industry in Indonesia due to the large gap between supply and demand. Indonesia as the fourth most populous country in the world is also the largest economy in the Southeast Asia region.”
In the construction of this data center HDC has 5 main objectives, namely:
- World-class security system with the application of 7 layers of processes based on biometrics, artificial intelligence, and touchless systems.
- Environmentally friendly building design and data center facilities.
- Optimal efficiency level with PUE average target operating at 1.3.
- Guaranteed reliability of electrical power without downtime (zero downtime).
- And neutrality with the support of more than 20 network access providers directly.
Recent market research shows that it has been in the limelight as increasing cloud adoption has prompted more large-scale data center investment in recent years.
The demand for the facility is increasing exponentially with 150 million Indonesians expected to be able to access the internet by 2023 and 20 million new social media users added in the last two years. The Government’s Go Digital and Industry 4.0 vision is also likely to drive the need for more data centers, as one million fishermen and farmers will be provided with online support from thousands of technology startups along with efforts to digitize eight million SMEs.
In addition, the Data Center industry is largely driven by a subset of the existing customer base: public cloud and platform providers such as e-commerce and SMEs’ demand for low-cost storage solutions. More and more companies are abandoning in-house physical servers in favor of cloud hosting.
The 2020 pandemic has also accelerated changes in corporate IT strategies, as companies rapidly shift to the cloud. The continuation and optimization of this shift will continue over the next few years, creating a further emphasis on cloud service availability and connectivity across platforms.
PT Indonesia Infrastructure Finance
PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.
In its operations, IIF applies best practices based on international standards in providing credit, risk management, good corporate governance, and social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061