NTT To Build $500 Million Data Center In Indonesia

'Our Jakarta3 DC will be one of the largest data centers in Indonesia,' says Mizuho Tada, NTT Indonesia’s president director.

Nippon Telegraph and Telephone (NTT) recently unveiled plans to build one of the largest data centers in Indonesia for a price tag of $500 million.

The Japan-based telecommunications powerhouse said the new data center, dubbed Jakarta 3 Data Center (Jakarta3 DC), will be built in Cikarang, West Java, and start operations in 2020.

“Our Jakarta3 DC will be one of the largest data centers in Indonesia,” said Mizuho Tada, NTT Indonesia’s president director, in a statement. “I strongly believe that it will meet the needs of our customers for reliable and safe data center.”

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Jakarta3 DC will bring the total number of NTT data centers in Indonesia to three. The facility will accommodate up to 18,000 square meters of IT space and 45 megawatts. The data center will provide closed networks, private and public cloud services, as well as hybrid services.

Indonesia is striving to become a major data center player in the Asia-Pacific region as it tries to keep up with neighbors Malaysia and Singapore. NTT officials said data storage and usage are growing in Indonesia and that the new data center will help ensure data access speed and low latency.

“I expect the NTT’s Jakarta3 DC to contribute to smooth hyper-scale transactions in Indonesia,” said Mizuho in a statement. “It is a mirror site that is connected to our existing Jakarta2 DC to provide easy and smooth access to information systems and public service applications, especially for services and protection of customers’ data, and will have real-time synchronization.”

NTT consists of dozens of businesses including NTT Communications, NTT Security and solution provider powerhouse Dimension Data and owns over 140 co-location data centers around the globe.

The company provides hosted, managed and custom co-location services. NTT has approximately 17 data centers in the U.S. including in Dallas, Ashburn, Va., and several in California.

Data center Capex spending hit an all-time high in 2018 at $120 billion as hyper-scale operators like Amazon Web Services, Google, Oracle and Microsoft are investing heavily in building new or expanding data centers.

According to Synergy Research Group, businesses worldwide spent more than $150 billion in the first half of 2019 on cloud services and infrastructure. To meet this high demand, vendors are spending billions each quarter on building or expanding data centers to provide more cloud infrastructure services, such as Platform as a Service and Infrastructure as a Service, as well as buying hardware and software for public, private and hybrid infrastructure. Cloud data center spending is expected to surge in 2020 after server capacity is reached for many companies.