Keppel forges joint venture to develop data centre in Indonesia

The construction of the data centre’s core and shell and the first phase fit-out is eyed for completion by H1 2020.

Keppel Group and Indonesian conglomerate Salim group formed a joint venture (JV) to develop and operate a high-availability data centre in Bogor, Indonesia, an announcement revealed.

Salim Group and Keppel Data Centres have agreed to develop the 60:40 JV to develop the 105,300 sq ft IndoKeppel Data Centre 1 (IKDC 1) which will feature Tier 3 concurrent maintainability standards for power and cooling. The construction of the data centre’s core and shell and the first phase fit-out is eyed for completion by H1 2020.

“We have fibre optics cables laid out all across Sumatra, Java all the way to Bali,” Salim group director Sugiharto Darmakusuma said. “We also have invested in our own submarine cables from Java to Singapore.”

Separately, IKDC 1 and its underlying 3ha land plot will be held by a 60:40 joint venture between Salim Group and the Keppel’s Alpha Data Centre Fund (Alpha DC Fund), respectively.

"Unique asset classes such as data centres continue to attract strong investor interest. We look forward to adding another quality asset to the Fund's portfolio with the aim of delivering the best returns to investors," Alpha Investment Partners CEO Alvin Mah commented.

Keppel mentioned that the said land plot is eyed to be the first phase of a larger 7ha data centre campus development which will target the growing demand for quality data centre space in Indonesia.

“The partnership with the Salim Group is a prime example of Keppel Data Centres' strategy of working with strong local players in high growth markets to design and build the robust infrastructure necessary for the digital economy's expansion and future proofing,” Keppel Data Centres CEO Wong Wai Meng said.

The Salim Group is an Indonesian conglomerate with assets ranging from food, banking and telecommunications.