Digital Realty Enters Indonesia Through Formation of New Joint Venture

Rhea-AI Summary

Digital Realty (NYSE: DLR) has formed a 50-50 joint venture called Digital Realty Bersama with Bersama Digital Infrastructure Asia (BDIA) to develop and operate data centers across Indonesia. The JV incorporates BDIA's Jakarta-based carrier-neutral data center platform, BDDC.

The venture operates two data centers: CGK11 in Central Jakarta with initial 5MW IT load capacity (expandable to 32MW), and CGK10 in West Jakarta. CGK11 features direct connection to Indonesia's largest internet exchange provider (APJII) and will utilize ServiceFabric™, Digital Realty's service orchestration platform.

Digital Realty invested approximately $100 million for its 50% stake, including data centers and expansion-ready adjacent land. The Jakarta colocation market is projected to generate $499 million USD in 2025, with an 11% five-year CAGR and expected uptake of 54.6MW.

Positive

• Strategic expansion into Indonesian market through 50-50 JV structure minimizes risk while maintaining significant control
• Immediate access to operational data centers with established connectivity infrastructure
• Additional revenue streams through property management and development fees
• Strong growth potential with Jakarta colocation market projecting 11% CAGR
• CGK11 facility has significant expansion capacity from 5MW to 32MW

Negative

• Substantial initial investment of $100 million required
• Shared control with JV partner may limit autonomous decision-making
• Exposure to emerging market risks in Indonesia

Highly Connected Digital Infrastructure Enhances PlatformDIGITAL® Footprint in Asia Pacific

DALLAS, March 18, 2025 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, and Bersama Digital Infrastructure Asia (BDIA), a leading Southeast Asian digital infrastructure platform, today announced the formation of Digital Realty Bersama, a 50-50 joint venture (JV) to develop and operate data centers across Indonesia. The JV extends PlatformDIGITAL® into the dynamic Indonesian market, directly supporting the acceleration and growth of its digital economy, which is driven by the country's young and digitally savvy population.

Bersama Digital Data Centres (BDDC), BDIA's leading Jakarta-based carrier-neutral data center platform, has been contributed to the JV and will now operate as Digital Realty Bersama.  BDIA's major shareholders include Provident Capital Partners, Saratoga Investama Sedaya, a Macquarie Asset Management-led consortium, and Distro Hub.

BDDC has been led by an experienced management team, including Chief Executive Officer Angelo Syailendra, and Chairman Setyanto Hantoro, both of whom will continue as leaders of Digital Realty Bersama. Krishna Worotikan, former Country Chief Financial Officer of Microsoft Indonesia, has joined as Chief Financial Officer.

Digital Realty Bersama owns and operates a connected campus that includes a recently launched, state-of-the-art data center (CGK11) strategically located in Central Jakarta and another data center (CGK10) located in West Jakarta. Initially launched with 5 megawatts (MW) of IT load capacity, CGK11 is expected to support up to 32MW through its next phase of expansion.

CGK11 offers customers a robust connectivity hub in the central business district, with direct access to a wide array of networks and services throughout Indonesia. It will also have a direct connection to Association of Indonesian Internet Service Providers (APJII), Indonesia's largest internet exchange provider, making it one of the most connected, network-dense data center sites in downtown Jakarta.  Connectivity will be further supplemented by ServiceFabric™, Digital Realty's service orchestration platform, enabling customers to centrally manage complex workflows and orchestrate their hybrid IT infrastructure and AI workloads. According to Structure Research, the Jakarta colocation market alone will generate $499 million USD in 2025, with a five-year CAGR of 11% and an expected uptake of approximately 54.6MW.

"Digital Realty is committed to powering the growth of Indonesia's digital economy by providing businesses with the critical foundation they need to succeed in the digital age and to leverage emerging technology like AI," said Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty. "This JV combines Digital Realty's global data center expertise and scale with BDDC's local market knowledge and robust connectivity, creating a unique value proposition for our customers. We are excited to collaborate with our partners to deliver unparalleled value to this dynamic market and to introduce PlatformDIGITAL® to Indonesia, empowering our customers to achieve their digital ambitions."

"We are honored to collaborate with Digital Realty, a global leader in data center solutions, to deliver the essential infrastructure that will catalyze Indonesia's digital economy," said Angelo Syailendra, Chief Executive Officer of Digital Realty Bersama. "Digital Realty Bersama will provide swift, cutting-edge, and well-connected data center capacity in central Jakarta, designed to support the market's next wave of growth, driven by high-performance computing and AI-powered advancements."

Setyanto Hantoro, Chairman of Digital Realty Bersama added, "The launch of Digital Realty Bersama marks an exciting next chapter in Indonesia's digital evolution. We look forward to a close partnership between Digital Realty and BDIA to build the vital infrastructure underpinning Indonesia's burgeoning digital economy."

Verena Lim, Co-Head of Asia-Pacific Macquarie Asset Management Infrastructure and Asia Chief Executive Officer of Macquarie Group, added, "We consider the Southeast Asia digital infrastructure sector to be very attractive given the exponential growth of data consumption and significant capital requirements for infrastructure to keep pace with demand. We are very pleased to partner with Digital Realty on Digital Realty Bersama and believe their market-leading global sector expertise will complement Bersama's strong on-the-ground presence and local relationships. We look forward to supporting Digital Realty Bersama in its next phase of growth in developing the digital economy of Indonesia".

Digital Realty contributed approximately $100 million upon closing for a 50% interest in the data centers and adjacent land, which will support further expansion. In addition to its equity interest, Digital Realty will receive property management and development fees from the JV.

About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

About Digital Realty Bersama
Digital Realty Bersama is a provider of premier digital infrastructure solutions, offering a comprehensive suite of highly connected and scalable data center, colocation and interconnection solutions. The company is a joint venture that combines the expertise of Digital Realty, the largest global provider of cloud-and-carrier-neutral data center, colocation, and interconnection solutions, with the experience of the Indonesian digital ecosystem and robust interconnection capabilities provided by Bersama Digital Data Centres and its shareholders – PT Saratoga Investama Sedaya Tbk, Provident Capital Partners, Macquarie Asset Management-led consortium and Distro Hub. In order to meet the critical infrastructure needs of enterprises and digital services companies in Indonesia, Digital Realty Bersama seeks to propel digital infrastructure and connectivity in Indonesia forward and be a vital connectivity hub that connects customers and partners to advanced and reliable digital solutions across the globe.

About Bersama Digital Infrastructure Asia Pte. Ltd.
Bersama Digital Infrastructure Asia Pte. Ltd. is a Southeast Asian regional digital infrastructure platform focusing on telecommunication towers, data centers and fiber. It is controlled by Provident Capital Partners and Saratoga along with a Macquarie Asset Management-led consortium as a significant minority shareholder.

About Macquarie Asset Management
Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately $US633.7 billion in assets, we provide a diverse range of investment solutions including real assets, real estate, credit and equities & multi-asset. Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs over 20,600 people in 34 markets and is listed on the Australian Securities Exchange. All figures as at 30 September 2024.

For Additional Information
Media Contacts
Helen Bleasdale
Digital Realty
+1 737 267 6822
hcbleasdale@digitalrealty.com 

Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 415 275 5344
InvestorRelations@digitalrealty.com 

Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the Indonesian market, development plans in Indonesia, our expectations regarding the joint venture's development plans and operations in Indonesia, the company's strategy and expected growth in digital transformation and customer demand. For a list and description of such risks and uncertainties, see the reports and filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-realty-enters-indonesia-through-formation-of-new-joint-venture-302402730.html

SOURCE Digital Realty

FAQ

What is the size of Digital Realty's investment in the Indonesian joint venture?

Digital Realty invested approximately $100 million for a 50% stake in the data centers and adjacent land.

What is the current and maximum capacity of CGK11 data center in Jakarta?

CGK11 launched with 5 megawatts (MW) of IT load capacity and can expand up to 32MW in its next phase.

What is the projected value of Jakarta's colocation market in 2025?

The Jakarta colocation market is expected to generate $499 million USD in 2025, with a five-year CAGR of 11%.

How many data centers does Digital Realty Bersama operate in Indonesia?

Digital Realty Bersama operates two data centers: CGK11 in Central Jakarta and CGK10 in West Jakarta.