Graha Teknologi Nusantara, the data center unit of listed information technology company Multipolar Technology, aims to start operations on its first data center in Cikarang, West Java by April next year. (ID Photo/David Gita Roza)

Multipolar Sets 2016 Operations Target for $200m W. Java Data Center

JULY 03, 2015

Jakarta. Graha Teknologi Nusantara, the data center unit of listed information technology company Multipolar Technology, aims to start operations on its first complex in Cikarang, West Java, by April next year, in the first phase of its $200 million venture into the business.

“Anticipating high demand from the market, especially in the financial and industrial sectors, we’ve prepared as much as 20,000 server racks servers, which will make us one of the biggest collocation data centers in the world,” Richard Kartawijaya, president director of GTN, said in Jakarta on Friday.

He said capacity will be added gradually across three data centers, adding that the company will set up about 8,000 server racks in the first data center.

The company — a joint venture between Multipolar Technology, Japanese investment firm Mitsui and Mitsui’s subsidiary Mitsui Knowledge Industry — started construction on the first data center on Thursday.

The company is estimated to invest between $25 million and $30 million during the first stage of development, said Harijono Suwarno, a commissioner of GTN.

“We hope to reach 20,000 racks in less than five years, but it really depends on [Indonesia's] economic growth and the demand for IT in the country. Developing countries tend to see faster growth [for IT spending],” he said, adding that the company has not yet decided when it will start building the second data center.

IT companies in Indonesia have been racing into the data center business in the past year, hoping to benefit from a government regulation which may require companies that offer public services — such as banks and multifinance firms — to securely store their data locally.

IT-related spending in the country is forecast to climb 18 percent to $15.6 billion with 47 percent coming from enterprises, according to IT market research firm International Data Corporation.

Multipolar Technology faces direct competition from Sigma Cipta Caraka, a subsidiary of state telecommunication firm Telekomunikasi Indonesia, and Supra Primatama Nusantara, operator of the Biznet Networks service.

GlobeAsia

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