Data Centers in Bandar Lampung
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Bandar Lampung – The Essential Gateway to Sumatra
Executive Summary
Bandar Lampung serves as the critical interconnection point for traffic moving between the high-density markets of Java and the expanding digital economy of Sumatra. This strategic location is purpose-built for edge deployments and disaster recovery, ensuring physical isolation from the capital while maintaining high-speed access to the national core.
Bandar Lampung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable gateway managing traffic across the Sunda Strait. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Nearest major on-ramp hub is Jakarta. |
| Power Cost | $0.08/kWh – as of January 2026 | Competitive industrial rates with a diverse energy mix. |
| Disaster Risk | Moderate (4.5/10) – as of January 2026 | High seismic and maritime risks require specific engineering. |
| Tax Incentives | Yes | Concessions available for facilities in designated zones. |
| Sales Tax | 12% VAT – as of January 2026 | Standard Indonesian value-added tax rate. |
Network & Connectivity Ecosystem
Bandar Lampung serves as the primary interconnection point for data traffic entering Sumatra. Its infrastructure is purpose-built to manage high-volume terrestrial backhaul into the national core.
Carrier Density & Carrier Neutrality: Carrier count: over 5, as of January 2026. The market is supported by a mix of domestic telecommunications providers and regional ISPs that manage traffic exchange between Sumatra and the Java mainland.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of January 2026. While local on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure are not present, low-latency private extensions to Jakarta provide efficient access to these platforms.
Internet Exchange Points (IXPs): Peering is primarily handled through regional nodes or backhauled to national exchange points in Jakarta to ensure efficient routing for local Sumatra traffic.
Bare Metal: High-performance infrastructure requirements are met via providers like Latitude.sh, enabling automated server deployments without the overhead of physical hardware management.
Power Analysis
The energy landscape in Bandar Lampung reflects a commitment to industrial stability and regional growth.
Average Cost Of Power: $0.08/kWh, as of January 2026. This pricing is competitive for the region and is based on an energy mix of approximately 81% fossil fuels and 19% renewables. These rates help manage operational expenses for cooling systems.
Power Grid Reliability: The local grid utilizes a multi-substation framework integrated into the broader Sumatra transmission network. It provides a sturdy foundation for 24/7 operations within the city industrial corridors.
Market Access, Business & Tax Climate
Bandar Lampung is the economic engine of Lampung Province and a critical transit point for the southern half of the island.
Proximity To Key Business Districts: Data center assets are centrally located near the Port of Panjang and main administrative hubs. This offers low-latency access for the logistics, government, and digital finance sectors driving the local economy.
Regional Market Reach: A facility in this market effectively serves over 55 million people across Sumatra. Being the first major network hop for traffic originating from Java makes it a strong location for content caching.
Tax Advantage For Data Centers: Qualifying operators benefit from regulatory relief and VAT exemptions when operating within designated special zones. This structure lowers the initial capital burden for infrastructure and power equipment.
Natural Disaster Risk
Bandar Lampung carries a Moderate (4.5/10) risk profile, as of January 2026. The local geography requires specific attention to seismic and maritime hazards.
Tsunami: 9.3/10 (as of January 2026). As a coastal gateway, this is a material risk requiring specific site selection and elevation strategies.
Earthquake: 8.9/10 (as of January 2026). High seismic activity in the region necessitates facilities built to stringent structural standards.
River Flood: 8.4/10 (as of January 2026). Seasonal rainfall impacts low-lying districts, making reliable drainage systems a requirement.
Coastal Flood: 8.1/10 (as of January 2026). Rising sea levels and tidal surges are primary considerations for infrastructure near the waterfront.
Epidemic: 7.4/10 (as of January 2026). Regional health factors are noted for their potential impact on labor and operational continuity.
Other natural hazards, such as tropical cyclones and droughts, are considered minor or are not listed as primary threats to local infrastructure.
