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Data Centers in Bandar Lampung

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Bandar Lampung – Strategic Gateway to Sumatra

Bandar Lampung is an emerging digital market in Indonesia, providing a strategic footprint for businesses targeting the populous island of Sumatra. Its developing infrastructure offers a cost-effective alternative or secondary site to the primary hub of Jakarta, ideal for disaster recovery and serving local consumer and agricultural markets. This location is best for companies prioritizing regional distribution and resilience.

Bandar Lampung: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity, though less dense than primary Indonesian markets.
Direct Cloud On-Ramps0 – as of September 2025The nearest major cloud hub is Jakarta; access via private network extensions.
Power CostIDR 1,550.00 – 1,800.00/kWhA competitive rate for the region, reflecting a fossil-fuel-heavy energy mix.
Disaster RiskModerate (4.5/10) – as of September 2025Significant exposure to specific seismic and weather-related events requires robust planning.
Tax IncentivesYesData centers in designated areas may receive concessions or regulatory relief.
Sales Tax12% VAT – as of September 2025Standard national value-added tax rate applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier density is developing, with fewer than 20 regional and national providers present as of September 2025. The market is growing, but carrier-neutral facilities are limited compared to Jakarta.

Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Bandar Lampung as of September 2025. Businesses require private network links, such as MPLS or VPLS, to connect to cloud provider fabrics in the nearest major hub, Jakarta.

Internet Exchange Points (IXPs): Public peering is not established in Bandar Lampung. Most network interconnection occurs privately or is routed through national exchange points in Jakarta, which handles the majority of Indonesia's internet traffic.

Bare Metal: Bare metal server availability is growing, with regional capacity offered by providers such as Hivelocity and Leaseweb that can serve workloads in the area.

Power Analysis

Average Cost Of Power: Industrial power costs range from approximately IDR 1,550.00 to 1,800.00 per kWh as of September 2025. This pricing is in line with other developing Indonesian markets. The grid relies heavily on fossil fuels (~81%), with a smaller but growing share from renewables (~19%).

Power Grid Reliability: The power grid is managed by the state utility, PLN. While service is generally stable in commercial zones, data centers require robust N+1 or 2N UPS systems and multiple backup generators to ensure continuous uptime, which is standard practice for the region.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Bandar Lampung are positioned to support the region's key industries, including agriculture, shipping, and logistics, given the city's role as a major port and economic center for southern Sumatra.

Regional Market Reach: The market provides low-latency access to the nearly 60 million people on the island of Sumatra. It serves as a crucial digital gateway for content delivery and service provision outside of Java.

Tax Advantage For Data Centers: Indonesia provides tax incentives that can benefit data center operators. These incentives may include concessions or exemptions on taxes and other regulatory relief for facilities developed in specially designated economic zones.

Natural Disaster Risk

Bandar Lampung has a moderate overall disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025. The primary threats are geological and meteorological, stemming from the country's position on the Ring of Fire and in a tropical climate.

Key natural hazards include:

  • Tsunami (9.3/10)
  • Earthquake (8.9/10)
  • River Flood (8.4/10)
  • Coastal Flood (8.1/10)
  • Drought (3.4/10)
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