Data Centers in Bandar Lampung
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Bandar Lampung – Emerging Digital Hub for Sumatra
Bandar Lampung is an emerging edge data center market providing strategic access to the southern Sumatra region. For businesses targeting this expanding Indonesian economic corridor, deploying infrastructure here reduces latency and improves application performance for a significant local population. This market is ideal for content delivery networks, e-commerce platforms, and enterprises needing a resilient footprint outside of Java.
Bandar Lampung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, with opportunities for growth in international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Jakarta; private network extensions are available. |
| Power Cost | IDR 1,550.00 - 1,700.00/kWh | Based on national industrial rates; fossil fuels dominate the grid mix. |
| Disaster Risk | Moderate (4.5/10) | Significant exposure to seismic and weather-related events requires resilient infrastructure. |
| Tax Incentives | Yes | DC-specific concessions and exemptions are available in designated economic zones. |
| Sales Tax | 12% VAT – as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a developing market, Bandar Lampung has a focused carrier presence, with fewer than 20 providers available as of September 2025. Carrier-neutral facilities are essential for diverse and resilient network strategies.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Bandar Lampung as of September 2025. Businesses require dedicated network connections, such as private network interconnects (PNI) or wavelength services, to access major cloud provider regions in Jakarta.
Internet Exchange Points (IXPs): Public peering is limited in Bandar Lampung. Most traffic exchange occurs through private peering arrangements or is routed through national IXPs located in Jakarta, which serves as the primary hub for Indonesian internet traffic.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity and Latitude.sh can service the region, often deploying from nearby hubs like Singapore or Jakarta.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between IDR 1,550.00 and 1,700.00 per kWh, as of September 2025. This pricing is in line with other developing markets in the region, but the grid's high reliance on fossil fuels (~81%) can be a factor in sustainability planning.
Power Grid Reliability: The local power grid is developing. Data centers in the area require robust backup systems, including multi-generator setups and extensive UPS capacity, to ensure consistent uptime and meet service level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Bandar Lampung provide low-latency access to the city's commercial centers and the surrounding agricultural and industrial zones of Lampung province. This proximity is critical for logistics, local government services, and regional e-commerce.
Regional Market Reach: The market effectively serves the entire southern portion of Sumatra, an island with over 60 million people. It acts as a key digital gateway connecting Sumatra to Java via undersea cables.
Tax Advantage For Data Centers: The Indonesian government provides tax incentives for data centers operating within designated Special Economic Zones (SEZs). These programs offer relief from certain taxes and regulatory burdens, directly lowering the operational costs for providers and their customers.
Natural Disaster Risk
Bandar Lampung has a Moderate disaster risk profile, with an overall INFORM Risk score of 4.5 out of 10, as of September 2025. The primary natural hazards are driven by the region's geographic and seismic location.
Key risks include:
- Tsunami: 9.3
- Earthquake: 8.9
- River Flood: 8.4
- Coastal Flood: 8.1
- Epidemic: 7.4
While tropical cyclone risk is low (1.5), the significant exposure to seismic and flood-related events demands that data centers are built to high resiliency standards with specific site selection and structural engineering.
