Salim Group partners Keppel Group to develop data centre in Bogor

The Salim Group and the Keppel Group have agreed to jointly develop and operate a high-availability data centre in Bogor, which is located about 35km from Jakarta, Indonesia. The move will be done via the Alpha Data Centre Fund, managed by Alpha Investment Partners and Keppel Data Centres.

Called IndoKeppel Data Centre 1 (IKDC 1), the data centre will be developed and operated via 60:40 joint venture between the Salim Group and Keppel Data Centres. Its development will be rolled out in three phases, with the first phase being expected to conclude by the first half of 2020.

On a separate note, IKDC 1’s underlying 3ha land plot will be held via a 60:40 joint venture between the Salim Group and the Alpha DC Fund respectively. The 3ha land plot will be the first phase of a larger 7ha data centre campus development which looks to cater to a growing demand for quality data centre space in Indonesia.

The partnership builds on both Salim Group and Keppel’s experiences in developing and operating high-availability data centres in the region. According to a statement, the collaboration pools both groups' expertise for the construction, fit-out and subsequent operation and maintenance of the data centre.

"The Salim Group is one of Indonesia's biggest conglomerates with many diversified assets ranging from food, banking and telecommunications. For the past decade, the group has been keen on preparing and expanding its Salim Digital Ecosystem to support the nation's transformation to Industry 4.0. It's here,” Sugiharto Darmakusuma, director of Salim Group, said.

Darmakusuma added that the group has been “actively investing” in fibre connectivity for the past decade, with fibre optics cables laid out all across Sumatra, Java all the way to Bali. The company is also expanding its data centres to achieve a global presence and as such believes Keppel Data Centres is the right partner to achieve that.

"With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres' presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution,” he added.

Alvin Mah, CEO of Alpha Investment Partners said with internet penetration rate currently at about 50%, e-commerce and cloud service providers are realising the market's potential. As such, these providers are looking to make inroads – in turn bolstering data centre demand.

"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," Mah added.

"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," Wong Wai Meng, CEO of Keppel Data Centres said.